Hello Guys,
Can someone please tell me the best lender for a half built home in Melbourne (eastern suburbs).
The original house was suppose to be 'renovated', the owners demolished almost the whole house and started fresh and now it is near lock-up stage but for personal reasons the vendors couldn't continue building so selling. The previous builder is not available to complete so can't give a financier fixed cost to complete. Purchase price is basically land value which any valuer would be able to confirm. I just want to know whats the best LVR loan can be obtained on such property and who would be able to offer them if settlment was to take place in 5 weeks.
Purchasers are not first home buyers and can service the debt whilst their current IP is sold (already in market) which will give them adequate cash to complete the house.
I know we have lots of brokers in this forum so will appreciate if someone can help with this.
Thanks
Very difficult to go out on a limb without any real information but i am going to say there might be a couple of ways in getting an 80% lend.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
If I were to get 80% – what would be the ideal way to do it?
I would appreciate your suggestion on this one.
Or would you prefer me calling you to discuss?
will be hard to finance something like this.
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
Hi Terry, Even if the land only valuation is supporting the purchase price?
Yes,, may be limited to loan based on land valuation only.
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
Am i missing something here.
If it is a standard Real Estate Contract i believe you would get 80% of the purchase price.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Richard
I would think it depends on how far completed it is. If there no occupancy certificate it will be harder.
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
Some lenders after the valuation suggested not suitable security due to half renovated house and even refused to accept it as security. I suppose it will work only if someone accepts COS as the purchase price. Any easy ones these days?
anandd wrote:Hello Guys,Can someone please tell me the best lender for a half built home in Melbourne (eastern suburbs).
The original house was suppose to be 'renovated', the owners demolished almost the whole house and started fresh and now it is near lock-up stage but for personal reasons the vendors couldn't continue building so selling. The previous builder is not available to complete so can't give a financier fixed cost to complete. Purchase price is basically land value which any valuer would be able to confirm. I just want to know whats the best LVR loan can be obtained on such property and who would be able to offer them if settlment was to take place in 5 weeks.
Purchasers are not first home buyers and can service the debt whilst their current IP is sold (already in market) which will give them adequate cash to complete the house.
I know we have lots of brokers in this forum so will appreciate if someone can help with this.
Thanks
Hi Anandd,
I can only comment on the limited information that has been provided. Firstly the maximum LVR needs to be 80%. No mortgage insurer would touch such a deal. Secondly, the customer needs to be squeaky clean; i.e. strong servicing, stable customer, etc. Thirdly, you would need to present to the bank a lot of supporting information, this includes why has the development stopped and more importantly how much will it cost to ‘finish’ the construction.
The thing I cannot understand and which slightly worries me is that you are saying that the dwelling is almost at lock up stage but the builder cannot provide an estimation on how much it will cost to complete? Have you tried ascertaining quotes from other builders?
Shahin Afarin – Property Finance Consultant
http://elitepropertyfinance.wordpress.com/TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Hi anand
Yes one or two.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Shahin,
The vendor died and the surviving party (Estate representative) don't have plans available to get a fixed price quote. And the relationship between the vendor & the builder were not the best and I suppose he didn't get paid which resulted into this builder not interested in talking to anyone. we can't get a fixed price quote from anyone unless there is a plan.
anandd wrote:Hi Shahin,The vendor died and the surviving party (Estate representative) don't have plans available to get a fixed price quote. And the relationship between the vendor & the builder were not the best and I suppose he didn't get paid which resulted into this builder not interested in talking to anyone. we can't get a fixed price quote from anyone unless there is a plan.
Hi Anandd,
You have one other option but the final LVR must be under 80%. I don’t have visibility of the customer’s deposit/asset balance but you will need to submit 2 loans – one as a vacant land purchase at say 60% and the second (concurrently) as a construction (which covers the demolition) loan for say the 20%. You will also need a quote from a licensed builder showing the demolition and the construction and the progress payments.
Shahin Afarin – Property Finance Consultant
http://elitepropertyfinance.wordpress.com/TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
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