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We found St George was prepared to look at ours where other banks were useless, they couldn't understand the process and so refused on a technicality rather than the LVR.

Sounds like a great opportunity. I agree with Bargain Hunter - check out the contract before you get too involved in negotiations, it should specify what dwellings/extensions are council approved. If you have a buy and hold philosophy, then it sounds great from a rental perspective. Probably...