I have just purchased a property which is on a double block. One block is able to be sold off once council requirements such as a sealed driveway etc. are undertaken. One thing that I have never read anywhere is that the broker that I went through to get the finance has mentioned that I have to buy the property outright with no loan or security over that particular property because I am going to sell off some of their security which they wouldn't be happy with. I do have enough equity in other properties. I was just wondering if this is correct or is the broker incorrect in what he is telling me.
No, you can borrow against that property. You just have to apply for a variation of security when you change titles
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Only thing you need to bear in mind is that the lender will want to revalue the security that you are retaining and ensure that the loan to value ratio is mainted within its normal guidelines.
I have financed literally 100's of clients doing just what you are doing and never had an issue.
Richard Taylor | Australia's leading private lender
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