All Topics / Finance / Raising Finance on a put and call option agreement.

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  • Profile photo of HigherdaleHigherdale
    Participant
    @moasis
    Join Date: 2014
    Post Count: 7
    March 7, 2015 - 5:49 pm

    My neighbours and I are selling our houses to a developer on a put and call option agreement. Given the way house prices are moving I would like to purchase another house and rent it out until we have settled on the sale of my house. Will the bank give me finance based on the put and call option agreement? Any other advice would be appreciated.

    • This topic was modified 9 years, 9 months ago by Profile photo of Higherdale Higherdale.
    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    March 7, 2015 - 6:23 pm

    Look at bridging loans – some banks will take into account the end debt – ie assume your home and loan are gone. Generally you must sell within 12 months of getting the new loan.

    Also consider that there is a chance your purchaser may not settle so seek legal advice.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of HigherdaleHigherdale
    Participant
    @moasis
    Join Date: 2014
    Post Count: 7
    March 7, 2015 - 6:35 pm

    Thanks.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    March 7, 2015 - 9:46 pm

    As Terry mentioned with bridging you can go circa 85% lvr of combined values so as long as you don’t have a large PPOR loan you shouldn’t have an issue.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

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