3 townhouses on one title

Discussion in 'Loans & Mortgage Brokers' started by Elicon, 14th Apr, 2017.

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  1. Elicon

    Elicon Well-Known Member

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    hi guys,

    Will any lenders out there refinance a recently completed property with three townhouses and an occupancy permit has been issued but the strata plan is still a couple of months away from being registered.

    I went into nab and they said they can't help until subdivided. Founde it a bit strange but that's life these days I guess.

    Any help will be appreciated.

    Many thanks
     
    Elicon, 14th Apr, 2017
    #1
  2. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    There are many lenders they will do 3 units on a single title including NAB. I think the person you have spoken doesn't know much about their credit policy.

    From an equity perspective you are better off valuing them once they are on seperate titles.

    Other lenders that will do 3 units on single title include CUA, RAMS, CBA, Adelaide Bank, BoQ, Gateway CU, TMB and its subsidiaries.

    Also 3 units on single title will be a long form val and this costs a fair amount of money so some lenders may pass on the cost to you.
     
    Shahin_Afarin, 14th Apr, 2017
    #2
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  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    St G would consider up to 70% LVR too
     
    Terry_w, 14th Apr, 2017
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  4. Hamish Blair

    Hamish Blair Well-Known Member

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    The LVR will likely be affected by an "in one line" discount. Bendigo applied 20% to mine (construction loan based on gross realisable value), so LVR was 80% (1-20%) = 64% of GRV.
     
    Hamish Blair, 14th Apr, 2017
    #4
  5. thatbum

    thatbum Well-Known Member

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    Wouldn't it make more sense just to wait that few months?
     
    thatbum, 14th Apr, 2017
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  6. Simon Moore

    Simon Moore Residential & Commercial Mortgage Broker Business Member

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    You can do this to 80% with a bunch of lenders (including NAB). You generally get a ~10% boost on valuations once construction is completed over the construction valuation in my experience.
     
    Simon Moore, 14th Apr, 2017
    #6
  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Typical vals haircut for > 2 props IOL is closer to 15 to 25 % in our experience...............and most lenders will struggle with allowing an upfront due to cost.

    The haircut is applied by the valuer more than the lender

    Its variable margin for "risk" of between 5 to 10 % that makes it hard to swallow, though its hard to see what effective risk there would be in a completed property that is only subject to OC and lender permission to split titles and new mortgages

    Unless there is a pressing need to get at cash now, I too would recommend sit and wait, 3 separate titles will give you more flex in valuer access as well


    ta

    rolf
     
    Rolf Latham, 15th Apr, 2017
    #7
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  8. Elicon

    Elicon Well-Known Member

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    Thanks everyone for there feedback.

    Reason I need to do it is because loan is in name of my myself, my old man and my brother and he has recently purchased a property and cannot get his loan through until he is off this loan. He settles in 1 month . He was a borrower on this initially from a servicing perspective. On title is my old man 95 per cent and me 5.


    Also my dad is retired and on pension and given its in own names the responsible lending piece will be applying so I'm sure that will create further dramas even though I will comfortably be able to service the debt myself. Won't ask my dad for a dollar.
     
    Elicon, 15th Apr, 2017
    #8
  9. Ethan Timor

    Ethan Timor Well-Known Member

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    Fair enough. Good thing he's not on the title. A decent broker should be able to get you sorted quickly and save you time and energy :)
     
    Ethan Timor, 16th Apr, 2017
    #9