Hi there,
Quick run down, looking to sell a seniors unit. It's tied in with another investment property. I also have my PPOR, that is separate. I tried about a year ago to refinance with no luck. No lenders would look at it with the unit attached (owing 100%)
I have approx 140k equity, with about 20k savings against my PPOR's loan. I didn't have the 20k when i previously tried getting out the the tied in properties. I'm with RHG, who i had no choice in getting, and they are a rip off.
Basically does anyone know a lender who has pretty competitive rates and would possible look at unlocking the properties from each other? Or a way to possibly get out of this? I currently have the unit on the market, without much success. I want to sell and free up the cash to do major reno's to my PPOR.
Any help or advice is appreciated!
Michael
When you say senior's unit – do you mean over 55's over retirement unit/village? Also are you wanting to refinance both investments or one? Also what are the loan amounts and values for each IP?
TheFinanceShop | Elite Property Finance
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If it is housing for people over 55 years old, it is torrens title / strata title (NOT LEASEHOLD) and is not part of a "retirement village" being a specialised community living style development then it can be financed with some lenders.
If it is leasehold then it cannot be done unfortunately. We managed to finance one leasehold property at 30% LVR recently via a private lender at an incredibly high interest rate, however aside from that I am not aware of a lender that can do the leasehold ones.
Yeah it is for the over 55's. It at Oxford Crest. And it's strata.
I would like to refinance both IP's, but i mainly just want to uncross collateralise them, if i can't sell the unit for the time being then so be it. I don't want to sell at a huge loss. The interest rate i'm paying on both the IP's is quite large, so ultimately i want to ge out of them both.
I've not had them valued for about a year, but the unit is probably worth around 110k. loan at about 106k. The other property is worth about 240k, loan at about 135k. My PPOR is worth about 250k, with about 200k on the loan, with an extra 20k in the offset.
Thanks
You have enough equity (assuming the vaules you have specified are correct) to unlink the securities and loans. You have $192k in equity against the higher IP. Minus that from the existing loan of $135k leaves you with $57k in equity. You can use this equity (make sure its a separate account to the existing loan of $135k) and bring you loan against the $88k which is at 80%.
There is a few lenders that will do over 55's but it depends on a few things one of which is the address of the property. I dont recommend you put this on the website though.
Regards
Shahin
TheFinanceShop | Elite Property Finance
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Hi Shahin,
We are interested in purchasing a over 55's unit. Can you please clarify what you mean by 'it depends on a few things'? What are these things?
Hi Lilian,
Lenders don't have a clean cut policy but the things that a lender looks at is but not limited to the location of the property, the number of units in the complex (the smaller the better), the size of the unit (the bigger the better), the LVR, where its PPOR or IP and the loan term. This is just a few things. I normally deal with ING for these types of securities but did do one recently with Australian First Mortgage.
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
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