Financinc PPOR

From: Donna L


Just interested if anyone out there who
has IPs and had loans against PPOR
has applied to knock down that PPOR to
rebuild? How do banks react? I guess we
are kind of back to front but I want to
finance the repayments on the house
from the rising equity on the IPs for the
loan repayments. Eventually there will be
inheritances etc to mitigate and pay out
but does the total loan have to be covered
by the block of land before you rebuild,
given that the value of the land and house
should be higher after rebuilding?

I think I am rambling but I hope this
makes sense.

Donna L
 
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Reply: 1
From: Rolf Latham


Hi Donna

The lender will do what is called a Tacrget on Completion Valuation, which is usually sufficient to cover the cost of building AND land.
So they look at the value of the finished product to calc LVRs
Rolf
 
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