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Refinancing a property with a caveat

Discussion in 'Property Finance' started by Chabs, 20th May, 2016.

  1. Chabs

    Chabs Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    152
    Location:
    Sydney
    Hi guys, is it possible to refinance a property that has a caveat? Its currently locked in a call option contract and will be guaranteed to be sold by december '16, however with some restructuring and going to a new bank the savings are significant, even in only 6 months.

    The problem is will the banks still do a valuation on a property with a caveat?

    I'd rather resturucture without the banks knowing it will be sold very shortly.
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    18th Jun, 2015
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    8,989
    Location:
    Sydney
    Bank's won't lend using a property with a caveat as security.
     
  3. Chabs

    Chabs Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    152
    Location:
    Sydney
    Okay, thought that might be the case :(

    Here's some advice to anyone reading this: Be VERY VERY cautious around call options, they're almost always in strong favour of the developers who organise them... Don't get stung for more than hundreds of 000's in lost opportunity.
     
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