Broker to assist in financing medical centre

Hi all, I have a friend who needs broker assistance on settling a space in a medical centre development. Settlement planned for mid March, he is a physio and will be operating from the premise, which is commercial space in a new residential development in Melbourne.

he purchased off the plan several years ago, and the market value of the space is significantly higher than purchase price. However, the lender has indicated they will only lend against purchase price, so significantly higher deposit than he anticipated.

so looking for a broker with experience in financing this type of space. Settlement is the priority, not rate or anything else. If you can post your details, I’ll pass on - thanks

purchase price $1.5m

 

Isn't that normal that the lender will only lend on the lesser of contract value or valuation?

The deposit required will not have changed, why would they be short as the contract value hasn't changed?

It's commercial, so 70% LVR wouldn't be unusual - they may get a lender who won't require LMI for medicos.

They could also consider getting whatever lender and refinancing after a few months (but be up for a full valuation and the lender's costs again).

 

Thanks Scott. I think he was counting on the increase in market value, so that at 70% LVR would cover most of the settlement. $1.5m purchase, but $2m conservative market value. So at 70% if market would have $1.4m funding and minimal additional settlement funds required.

They had some advice to this effect, and used ‘excess’ funds in the meantime to purchase their PPOR. Conversation with the bank yesterday suggested purchase price would be the val.

Hence, they are keen to chat with a MB that might offer a view on best steps. I think they’d be happy to pay higher rates to settle then look to refi after that to better rates.

any thought / suggested contacts welcome

 

@Rolf Latham or @Shahin_Afarin

 

This is an ANZ loan - they look at Physio's under their medico policy. You can go 80% of the contract of sale (if the valuation stakes) up and depending on servicing you can do unsecured lending for further things, overdraft, fit out, EF, etc.

 

Thanks all - he’s been in touch with ASAP group and getting assistance