Access to Equity

Hi, Just wondering about some ideas on the following situation.
I have a residential property (PPOR), valued at 220k with 160k owing and a rural/commercial property (10 acres, house and vineyard) valued at around 280k that is unencumbered.
Is it possible to access equity/cash from the commercial property?
I have spoken to a few brokers and no one seems interested.

 

Yes you could borrow against the commercial property providing you meet other lending requirements.

Not something a broker would generally be interested in though because of the complexity for such a small loan.

 

Hi Terry, thanks for the advice.
Are there brokers or lenders out there, that specialise (or at least look at) this kind of loan?
What sort of lending requirements would they require?
Sorry for the questions, just trying to get my head around it all.

 

Yes there are brokers that specialise in commercial or farming type property.

You will need adequate income, security property and credit history.

 

Plenty of lenders will do equity releases on commercial properties - ANZ do up to 80% LVR and their commercial servicing calc is quite good.

Structuring is very important and ensure that you dont cross securitise the properties as most bankers and brokers will end up tying the two up.