What will Macquarie do in this situation?

Hi MB's,

Just wrote this email for a friend who has a current loan on a block of land with Collins/Mac. I will be in a very similar situation when I develop my next block in the same way. Anyone hazard a guess as to how Mac will treat him? The loan is for 190k - 80% lodoc.

Question is - will Mac agree to retain the 80% lodoc loan at a reduced valuation or will they want the loan paid out?

At present we are building a 2 bedroom home on the land, which will be completed in around 4 weeks. We are ready to submit a Development Application to construct a second home at the rear of the land to create a dual occupancy. We expect this to be easily approved from our pre meetings with council. We have received a deposit for the house we are currently building and are preparing to sign a contract subject to the strata title being registered over the split block. We need to determine the logistics of dealing with existing Macquarie bank loan over the land. We will require Macquarie to release the title to the Lands Titles Office so that the strata can be registered. We then will proceed with settlement on the current house which would be soon after registration - perhaps within a week or so. After this is settled we would like to continue the loan agreement with Collins/Macquarie using the security of the remaining block which will have approved plans for the second dwelling. Could you please find out whether this will all be possible to achieve? We realise that Collins/Macquarie may revalue the remaining block at a lower value than the original block. We would be happy to pay down the balance to achieve this. We can send you a copy of the contract of sale for the existing house when it has been exchanged.

Would appreciate a prompt answer so that we can plan our financial pathway through the project
 
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