Lenders who will lend on inner city Limited Title?

Discussion in 'Loans & Mortgage Brokers' started by Propertunity, 18th Jun, 2018.

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  1. Propertunity

    Propertunity Well-Known Member

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    We have a client currently trying to buy a property in Glebe/ Balmain which is on Limited Title. They have a preapproval from ANZ but we’re told at the last minute that ANZ won’t lend on Limited Title. Which lenders would do this now?
     
  2. Terry_w

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

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  3. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Try CBA, and WBC/St G.

    Valuation costs might be expensive as both will require a long form val. And possible decline based on it. :rolleyes:
     
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  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    aka OLD title ?
    ta

    rolf
     
  5. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Jess is right - Cba, Westpac, St George and by exception Suncorp accept it and its a long form val. We did one with St George earlier in the year and they covered but its definitely an expensive type of val.
     
  6. bmc

    bmc Well-Known Member

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    Old System Title (old english common law). not unusual around old parts of Sydney.

    will the lender accept an Identification Survey Report in lieu of a full Survey Redefinition Plan lodgement ?

    the report will not remove the caution but will define the property boundaries based on the original deed description, available land and occupations. Noting any encroachments or discrepancies to original deed dimensions
     
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  7. Propertunity

    Propertunity Well-Known Member

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    It is recorded on the title @Terry_w

    upload_2018-6-19_8-24-5.png
     
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  8. Propertunity

    Propertunity Well-Known Member

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  9. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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    It means the property does not have a proper survey on record. I did a refi to Suncorp many years ago and it was the condition that a survey was done. $1500 I think it cost. The survey confirmed what they are taking the mortgage over.
     
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  10. bmc

    bmc Well-Known Member

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    a survey Plan of Redefinition in Balmain would be around $5k minimum. then there is the LPI lodgement fees on top.
     
  11. Gwynneth

    Gwynneth Well-Known Member

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    Hi,
    We are on this exact same position. Got our offer accepted with bank pre-approval. However, we got knocked back by resimac due to the title being limited. Vendor provided a survey report however this hasn’t been lodged to LPI yet since limited title still appears on the title search.
    Which banks will allow us to borrow in this situation with 95% lend? We have spare savings but ideally dont want to use cash.

    Thank you
     
  12. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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    I have made some enquiries and looks like a few options at 80% LVR or less but with LMI (95%) deal it would be very much case by case and you would have to go with a lender who has in house LMI approval as the insurers themselves would not accept. Some potential options ING, CBA.

    Is the rest of your proposal objectively strong? Why Resimac in first place? Servicing constraints?
     
  13. Lindsay_W

    Lindsay_W Well-Known Member

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    You need to speak to a decent broker asap. (oh look, one responded just before I did!)
    If I was in your shoes, I would use more cash for deposit, bring the LVR down, ideally below 90% if you can.
    Most if not all lenders who accept limited title will want to see the Survey report has been lodged
     
    Last edited: 17th Nov, 2021
  14. Gwynneth

    Gwynneth Well-Known Member

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    Wow thanks for the very quick reply!! Yes our broker just came back to say that Suncorp will lend us but on the condition of 90%..

    Having said that, what if we offer to pay for the delimitation to the vendor?
     
  15. Gwynneth

    Gwynneth Well-Known Member

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    We wanted to do 95% ideally. Resimac still allows for 95% and they have already provided pre-approval. Valuation came back OK. Servicing was OK too. Everything was OK except the limited title... This is our 3rd IP, and most big lenders wanted a 90% LVR.
    Thanks.
     
  16. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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    95% investment, right assumed was 95% owner occ. resimac makes sense then.

    unforts don’t think you will find a 95% investment solution as all the non banks generally won’t touch unusual security
     
  17. Gwynneth

    Gwynneth Well-Known Member

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    Thanks, Marty. Indeed we might be forced to use spare cash...
     
  18. Gwynneth

    Gwynneth Well-Known Member

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    Just an update on our situation, vendors don't want to extend cooling off anymore and would like to remarket the property. Cooling off expires today. So far Suncorp and CBA gave us preapprovals (Suncorp has scheduled valuation next week), I am also in the process of talking with Westpac. Westpac said they lend on limited titles without exception and settlement date with them is possible. All 3 require 90% LVR.

    Our cooling off expires today, should we rescind OR go ahead? Thoughts? :)
     
  19. Gwynneth

    Gwynneth Well-Known Member

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    Further update: Vendor agreed to extend cooling off period upon advise of the agent's company director.
     
  20. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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    sounds like you may end up frying your credit file with multiple hits in short space of time. If you don't bank with Westpac you might get system / credit score declined even if they accept the title. 90% investment, not banked, busy credit file. Tread carefully.
     
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