Suncorp + development

[HD_ACE]

Hi all

I have come to the understanding that suncorp will lend upto 80% of the land value plus fixed price contract for a development/ construction loan.

I am looking at a retain and build that I would like to go build strata rather than subdivide first to save alot of time.

Now if my fixed price contract includes subdivision costs so that on completion i will have two houses on two lots, for financing purposes will suncorp value it like this first up or only value it as two houses on one lot?

And is there anyway they will go into lmi territory if they will only value as one lot?
Has anyone gone down this path?

Any other ideas?

Cheers

 

[Aaron_C]

Hi all

I have come to the understanding that suncorp will lend upto 80% of the land value plus fixed price contract for a development/ construction loan.

So do many others.

Now if my fixed price contract includes subdivision costs so that on completion i will have two houses on two lots, for financing purposes will suncorp value it like this first up or only value it as two houses on one lot?

Usually they value it in one line. If the property is just two lots then valuation is less likely a problem as opposed to say 3-4.

And is there anyway they will go into lmi territory if they will only value as one lot?

If the valuation doesn't stack up then yes LMI will be needed....

Any other ideas?

Why suncorp?

 

[HD_ACE]

So do many others.



Usually they value it in one line. If the property is just two lots then valuation is less likely a problem as opposed to say 3-4.



If the valuation doesn't stack up then yes LMI will be needed....



Why suncorp?

They are saying max lvr they do on the whole project will be 80%. Is this true? I dont mind paying lmi so if the will only value as one but with higher lvr it will be fine.

The property is already with suncorp and lmi has been paid so if it can be done with them then i can utilise the lmi thats already been paid. Or else go the long way about the project.

Cheers

 

[Peter_Tersteeg]

There's plenty of lenders who will go to 90% of the value for this sort of project, it's essentially 2 houses/units on one block. The project is usually valued based on the original land value plus the construction contract price.

 

[HD_ACE]

There's plenty of lenders who will go to 90% of the value for this sort of project, it's essentially 2 houses/units on one block. The project is usually valued based on the original land value plus the construction contract price.

Is suncorp one of them?

So value of the property as it sits (land and original house?) plus contract price of new house equals the value they will lend against?

Cheers

 

[Marty McDonald]

I think this may be looked at by Suncorp as a "restricted security" meaning normal max LVR would be 70%, 80% by exception.

It's one of those ones where the bank is more strict than the lmi provider which is rare but does happen. ANZ is the same.

 

[HD_ACE]

I think this may be looked at by Suncorp as a "restricted security" meaning normal max LVR would be 70%, 80% by exception.

It's one of those ones where the bank is more strict than the lmi provider which is rare but does happen. ANZ is the same.

maybe this is the case then and why they are saying 80% lvr.

cheers

 

[Rolf Latham]

They are saying max lvr they do on the whole project will be 80%. Is this true? I dont mind paying lmi so if the will only value as one but with higher lvr it will be fine.

Obviously your goals have changed since you bought the place, because anything dual or more than one dwelling with Sun doesnt sit well > 80 % ,and id expect the banker or the broker would have asked that question,

Others with a similar illness include Bankwest and ANZ many times

ta
rolf

 

[Colin Rice]

PNB will value build strata as strata build.

Homeside will do three in a line at 95% under 1mill.

 

[HD_ACE]

Thanks guys.

Yes rolf original plan was a long term hold and then subdivide, but in the current market end values look really good to build in this area, hence looking at the different options cost and timewise.

Just waiting on a val to see if it will be at 80% or else look at other options ie refinance to another lender etc

Thanks for those lenders fms good to know who does what

Cheers