Hi all,
This is my first development (3 townhouses) and it's due for completion early next year. Bought it with 80% LVR with one of the major banks (the one who wants to "break up" with the others...)
I demolished the building after I got the development permit. I also decided to start construction as I have enough cashflow to fund half of the development and quite confident I could get subdivision permit before construction is complete. (first mistake?)
I did get the subdivision permit and Council's statement of compliance (except it was about 3 months later than I expected). Now the building is almost at lock up. Just when I thought the hard bit was over (second mistake) this major bank who owns my land will not release the title to the land titles office for me to create 3 separate lots. Their reason is now that the construction has started, they cannot value the lots separately unless the construction is finished.
I was so shocked... I am not even asking for 1 cent from them. All I want them to do is to consent to the subdivision so I can get three separate titles and they can have 3 properties as security instead of one. It can literally be done in like a week. How does the construction have anything to do with releasing the titles? They got 300k worth of new improvements on the land for free and they wouldn't let me subdivide? I thought subdivision is adding value to their security?
What have I overlooked??
thanks for all your comments
mm
This is my first development (3 townhouses) and it's due for completion early next year. Bought it with 80% LVR with one of the major banks (the one who wants to "break up" with the others...)
I demolished the building after I got the development permit. I also decided to start construction as I have enough cashflow to fund half of the development and quite confident I could get subdivision permit before construction is complete. (first mistake?)
I did get the subdivision permit and Council's statement of compliance (except it was about 3 months later than I expected). Now the building is almost at lock up. Just when I thought the hard bit was over (second mistake) this major bank who owns my land will not release the title to the land titles office for me to create 3 separate lots. Their reason is now that the construction has started, they cannot value the lots separately unless the construction is finished.
I was so shocked... I am not even asking for 1 cent from them. All I want them to do is to consent to the subdivision so I can get three separate titles and they can have 3 properties as security instead of one. It can literally be done in like a week. How does the construction have anything to do with releasing the titles? They got 300k worth of new improvements on the land for free and they wouldn't let me subdivide? I thought subdivision is adding value to their security?
What have I overlooked??
thanks for all your comments
mm