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Lenders and Post Construction Valuations

Discussion in 'Property Finance' started by Martinez22, 10th Mar, 2016.

  1. Martinez22

    Martinez22 Well-Known Member

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    21st Jun, 2015
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    Location:
    Perth
    Calling mortgage brokers!

    Are there any lenders that will accept a post construction valuation?
    I have a property I would like to sub-divide however the loan is highly leveraged against the existing security. The land will be subdivided, the property will be demolished and two dwellings will be built.

    The loan will reduce itself down to an 80% LVR based on the proposed post construction valuations on the two properties built. I am having trouble finding a lender that is willing take on the risk during the construction phase..

    Any help would be appreciated.
     
  2. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    Adelaide, SA
    Generally not for resi. There is one lender which does this but only to 70% of post construction val - so still quite tight for your scenario.
     
  3. Martinez22

    Martinez22 Well-Known Member

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    Perth
    What if the land has already been sub-divided?
     
  4. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    Location:
    Adelaide, SA
    If subdivided it's treated as two simple construction deals - easy. 90%+ LVR with most lenders.

    Which lender is the property with?
     
  5. tobe

    tobe Well-Known Member

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    If the land is already subdivided there's a good chance, as long as the valuer increases the land portion of the valuation, rather than the build.

    If the build portion of the valuation is higher than the build price, the increased equity is useless until after the building is completed (for the next refinance etc)

    Have you had any upfront valuations done yet?