Heritage Overlay HO442

[willy1111]

Hi Peoples,

I have looked over a contract for a property which is coming up for auction this Saturday and have noticed that it has a Heritage Overlay HO442.

The property is a 2 bedroom flat in a block of 6, quite large about 80+m2, built in the mid to late 70's.

My solicitor has said that to him there is no problem, as it is unlikely that I am going to be knocking down the building and redeveloping (obviously as it is a block of flats).

For some reason, I have it in the back of my mind that this may pose a problem for some lenders. However when I asked the lender, they said it is generally ok, but they would have to wait for the valuation report before they could say 100%.

Obviously, I don't want to be the successful bidder at auction put down a 10% deposit and then the bank turns around and says sorry we can't help you. And I can't use a finance clause as it is an auction. If I can't get finance then I'd would lose my deposit.

Any suggestions??, has anyone had any problems with finance and these heritage overlays on flats??

Cheers

 

[Twitch]

I've bought a house with a heritage overlay. A heritage overlay will affect everything from seemingly minor property improvements (house colours and fencing style) to total redevelopments. "Affect" doesn't mean rule out, it just means a longer planning process under stricter guidelines.

I can't imagine finance for a straight out purchase being affected though because of an overlay.

If I was you I would go with your solicitors advice.

 

[JIT]

A Heritage Overlay by virtue of the stricter development guidelines, protects the character of older properties and neighbourhoods, and in the long term could increase value.

GSJ

 

[Twitch]

A Heritage Overlay by virtue of the stricter development guidelines, protects the character of older properties and neighbourhoods, and in the long term could increase value.

GSJ

I agree! An overlay can indeed be an indicator for an attractive area that is in high demand from OOs.

The other thing an overlay does is (depending on the overlay) strongly discourage unit developments which means no new supply of units. That is good for the future price growth of the existing units that were built pre-overlay.

 

[Peter 14.7]

Agree.

Bank is simply covering it bets with subject to.

They may find if you did demolish you would not be able to rebuild at the same density.

Inner city Sydney City Council required on 50% built on but most old terraces are 80% and some 100% coverage.

Go for it I say and let others worry.

Most concern for old flats is "does it meet the fire code". Sprinklers are very expensive. Full concrete construction should mean yes it does.

Peter 14.7