Too much land?

I have a Suncrop small business loan with a rural living property (with house) as security. The land size is about 98 hectares, but I am going through a statutory road closing process at the moment with a view to consolidate that land with the farm and this will push the total land size over 100ha.

I recall some questions prior to obtaining the loan about land size and my recollection is that 100ha was probably the maximum that could be considered for security purposes. Does this sound right?

This matter will need to be broached with the bank at some stage as their consent will be required for the consolidation of titles, but I dont want to bring it up just yet - especially as the road closing is not a done-deal.

Does anyone here have any experience in this? Would my broker be able to investigate this without ruffling the banks feathers?

 

Is this NSW under S38 or S38B? Are you purchasing from council or RMS? If it's council, you'll need to have the motion to classify the land as "operational" to allow the land to be sold.

Is it going to be necessary to consolidate the titles?

Can you get a title/s issued for the road once the road dedication has been removed? Can you get a standalone loan for this section only without refinancing?

Will you need to create a right of way over the ex-road or other parts of the property for access to other properties?

A chat with your surveyor will guide what can be achieved @bmc

 

Thanks for the reply.
It's in Qld and the consolidation of titles will be a condition if the application is successful. I'm a licensed surveyor so that part is under control.
What I really need to know is if the 100+ ha thing us likely to be a problem with my lender.
Cheers

 

I'd be trying to avoid that condition or only consolidate with one side so there'd be two contiguous parcels (depends on the minimum size of the subdivision in the area) - then refinance with separate banks.

They're often my go to people for a creative approach to some issues.

 

100hec sounds about right with a few lenders. And yes your broker could easily look up the acceptable security policy

 

Thanks guys.