Duplex loan top up

Hi everyone,
Could anyone fill me in as to how long it takes to get a top up on a construction loan once the project is built?

I'm just finishing off a duplex and would like to draw some money out of it at the end as it has gone a little over budget and I'd like to reclaim the cash I've sunk into it. How much higher do they value the property when it's built and subdivided as opposed to when it was just a vacant block?

I have about 60 percent equity in the project and the bank is St George if that helps. Thanks.

 

Normally it'll be the land plus construction cost straight after, but you could order a new val if the area has seen strong growth. You should be able to cash out to 80% in any case, unless it's a quirky location or similar.

 

Hard to tell for us with the info presented - but Usually you’d have a good idea (better than us!). In general what your doing leads to manufactured equity. How much?

If subdivided, work out value of each property (as if you were a conservative valuer) and add the total together. Multiply by 80%. Subtract your existing loan amount.

You’ll be able to work out what available equity there is. You’ll also need to be able to service, and ST G have had a few changes in their investor calls which may make it trickier than your original loan. Also good idea to demonstrate what you plan on doing with the funds - ST G will ask and may want evidence.

 

Thanks for the replies. Yes, I'd want to value each unit as a separate property.

The original valuation was quite a bit under market value so I'm thinking the bank would be a bit more generous now they're built.

What about a time frame from application to funds being available?

 

Depends if all app requirements are met upfront.

Can be as little as 2 weeks if app flies through credit first go...and as much as 2 months if it’s a tricky app/has multiple reworks through St G.

Are there new titles involved (subdivision?) or is it still the same title? If new titles, it may delay the process if they aren’t registered yet. If same title, than should be quick and relatively easy.

 

Bank vals at the beginning are never generous as they are valuing it as both on the same title, which is what they technically are until you subdivide.

To get maximum money out they need to be finished and on their own titles then you will get maximum return.