Finance on flats

[WebBoard]

From: Guy Wood


Hi all,
Does anyone know the ball park LVR lenders will accept on blocks of flats?
I'm looking @ a block of 11 older flats (absolute waterfront!)that at present return a bit over 8% & was wondering if a loan on 75% LVR was a possibility or is 66% the limit?

 

[new class]

Reply: 1
From: Tom Cleary


Guy,
Can you please tell me the type of title on the flats. There are company titles strata and many more. Different lenders have different forms of criteria for each type.
Regards Tom

 

[WebBoard]

Reply: 1.1
From: Guy Wood


Tom
I don't have a copy of the contract, the agent handn't run them off yet, but I suspect it's Torrens Title.

 

[new class]

Reply: 1.1.1
From: Tom Cleary


If you can confirm, I will check it out for you tomorrow
Regards
Tom

 

[Rolf Latham]

Reply: 2
From: Rolf Latham


Hi Guy

Assuming they are all on one title then they are most likely to be a commercial
proposition - up to 70 should be possible.

SAme if on company title.

If strata title you could break them up into smaller lots and get 80 % across a range of lenders.

Toms right though, anyhtings likely !

Ta

Rolf

 

[WebBoard]

Reply: 2.1
From: Guy Wood


Definitely Torrens Tom,
You guys are great.
Thanx

 

[new class]

Reply: 2.1.1
From: Tom Cleary


Guy,
If you are buying the properties to re-sell or rent out, P and I loan would be O.K. and have a 90% LVR, If you need a LOC you would only get 85% LVR. It may also pay you to get just the one loan, this will save you a lot of money in fees and charges. If you need any more help, please feel free to ring me on 03 9830 1229 or 0413 403 221.
Don't forget as well, any loan over 80% will incur lenders mortgage insurance.
Regards Tom