amalgamation frustration

Looking for feedback !

We have two adjacent investment properties each secured with their own Lo Doc loan with RAMS.

We have received all the government & council approvals needed to subdivide the properties into a 4 lot subdivision, retaining the two houses & creating two new vacant blocks. The process requires the two titles to be amalgamated first and then the strata plan implemented.

Before even looking at any of the details, RAMS are refusing to release the titles unless we apply to refinance the two existing loans into one new loan hence triggering early exit fees for the current loans, new application fees, LMI etc not to mention providing a complete new set of supporting documentation.

Am I wrong in assuming that this is a bit harsh ? We are not seeking additional funds in fact the reverse is true as we are planning to sell the newly created blocks of land.

I'm not sure where the risk is for RAMS ? Sure they have to release the titles to allow the amalgamation and strata process to take place but having one loan instead of two won't alleviate that risk. Does anyone have any experience in this situation ?


Hiya Russell

U might be getting stuck on the LMI policy that being u cant have 2 insurnace policies on the one bit of security. Dumb hey, but thats what we have come across quite often wth WLMI.

Dont know what the soln is but to push the lender to waive the exits and cop the LMI. Means to an end I suppose ?