Port Hedland WA/Gladstone QLD - Lending

Hi there,

How are lenders with residential properties in Port Hedland WA and Gladstone QLD that are leased to mining companies eg. on 3x3 or 5x5 year commercial style leases?

Do they apply usual residential LVR's and interest rates, and do mortgage insurers accept these properties for 90-95% LVR borrowings?

Thanks.
 
Hi there,

How are lenders with residential properties in Port Hedland WA and Gladstone QLD that are leased to mining companies eg. on 3x3 or 5x5 year commercial style leases?

Do they apply usual residential LVR's and interest rates, and do mortgage insurers accept these properties for 90-95% LVR borrowings?

Thanks.

A lot of these "mining/rural" town are done case by case and how strong the file/client's case is.

BUT as a general guild;
1. No they won't apply the usual residential LVR - there will be restrictions.
2. Yes rate will be the same, most residential lenders do not "load" rates based on location
3. 3x3 or 5x5 year commercial style leases - Now this will be a concern to the LMI ppl and to a point the lender; all decided case by case and what another special conditions are within the contract + client's file.
4. 95% is possible, but the LMI ppl are a lot stricter with the 2 above location mentioned.


Regards
Michael
 
Varies

just did a 700 k land and build at 90 % lvr with standard resi terms in Gladdy

1500 a week in rent 2 year lease


and a 90 % purchase in PH 12 mth lease


valuer happy with all numbers and I think thats the key really

if u are getting 3 to 5 year leases then you may strike issues, BUT depends on how presented and overall possie

Dont muck around with B grade lenders if you need a decent LVR in either of these scenarios especially PH !

ta
rolf
 
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