Hi Jeff
The wrap kit never gave you a compliant Contract for you particular State.
If you email me and tell you what you are after I maybe able to assist.
We still sell our fully compliant Wrap Contract for Qld in PDF format.
Richard Taylor | Australia's leading private lender
Hi Richard,
Do you have an equivalent product for NSW transactions?
Cheers,
Brad
Hi Brad
No unfortunately all of the wraps we have ever done have all been in Qld.
Richard Taylor | Australia's leading private lender
in NSW there is a solicitor Anthony Cordato who specialises in wraps and sells a contract.
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
Xlent – thanks Terry
Presumably you guys in the finance game will be able to help with these questions:
1. What responsibilities do I have, if any, in terms of disclosure to MY lender when providing vendor finance to a third party?
2. If the wrap virtually constitutes a sale contract for a premium price, can I access that increase in equity?
You will need to get your lender's permission to wrap – ie sell the property on an installment contract or selling an option – as this will affect their security.
you won't be able to access equity in the property as the lender will go on market value. With an installment contract you have actually sold the property, but with a delayed settlement , so you can't access any equity in it. With a lease option it may still be possible, depending on whether the option holder lodges a caveat or not.
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
Brad
1. What responsibilities do I have, if any, in terms of disclosure to MY lender when providing vendor finance to a third party?
This day and age if you disclose it then no lender will consider the deal. We have done 101 of these ourselves and all were disclosed but the lender was aware of what we were doing. I think if you are starting out now you would only be able to do it as a investment property.
2. If the wrap virtually constitutes a sale contract for a premium price, can I access that increase in equity?
Regretfully not. Your purchaser has the right to register a caveat against the property to stop you doing this.
Lenders will only lend against valuation or purchase price whichever is the lowerRichard Taylor | Australia's leading private lender
Terry, I’ve re-read your first reply re setting up the LO like a 30yr PI loan and it now makes more sense to me. With ownership not changing, do I need permission from the lender to LO?
hi Brad
Yes you would need the permission of the mortgagor to sell an option on their security.
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
Terry and Richard,
Any tips on “selling” it to the bank? Should my broker make the approach or is there no advantage in that?
Cheers,
Brad
Banks generally won't allow it. ANZ put an alert out many years ago threatening brokers with expulsion if they put thru such a loan.
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
CBA were the same immediate termination of your agency if you lodged an application.
if he has been around the traps for a while he should be able to come up with something.
Richard Taylor | Australia's leading private lender
Hi Jeff
I have a wrap pack that I am willing to sell.
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