Hi all, could anyone shed some light on my problem please?
I am in the process of trying to borrow for a freehold business. The bank said 'yes' providing valuation came in ok.....it didnt for the business. Included in the valuation was "$90,000 a year for rent". The business is freehold so whats with the rent??
I have lost faith totally in my broker, he keeps me in the dark and whenever he talks to me he talks in circles. I never hear from him unless I ring him {out of shear frustration from hearing nothing}.
I was staggered also to learn that the bank will only lend on %65 LVR of the WHOLE loan. The property that the business is on, {excluding the business}, has been valued at one million. I have always assumed {my broker told me no different} that the land would have a LVR of around %85 and the BUSINESS ONLY a LVR of %65.
The broker was stunned by the inclusion of rent in the valuation but didnt have a clue as to why. He said "thats the way they do it". Needless to say, Im changing brokers.
Thanks for any light that can be shed on my two queries.
I am in the process of trying to borrow for a freehold business. The bank said 'yes' providing valuation came in ok.....it didnt for the business. Included in the valuation was "$90,000 a year for rent". The business is freehold so whats with the rent??
I have lost faith totally in my broker, he keeps me in the dark and whenever he talks to me he talks in circles. I never hear from him unless I ring him {out of shear frustration from hearing nothing}.
I was staggered also to learn that the bank will only lend on %65 LVR of the WHOLE loan. The property that the business is on, {excluding the business}, has been valued at one million. I have always assumed {my broker told me no different} that the land would have a LVR of around %85 and the BUSINESS ONLY a LVR of %65.
The broker was stunned by the inclusion of rent in the valuation but didnt have a clue as to why. He said "thats the way they do it". Needless to say, Im changing brokers.
Thanks for any light that can be shed on my two queries.