How PMA Settled a Property Purchase When the Bank Wasn’t Quick Enough
Scenario
The Borrowers have backgrounds in property investment and development.
The purpose of the loan was to complete the purchase of an investment property.
The security offered was a rural residential property covering 537 hectares of land, which included a house with a beautiful view.
Why PMA?
The Borrowers had planned to consolidate titles and sell them prior to contract purchase date however delays were encountered with council requirements which meant that the consolidations were not able to be completed in time.
PMA Solution
PMA was able to obtain valuations and provide sufficient funds to settle the purchase to allow the vendor to purchase their new home [important to our client]. Prepaid interest term was provided which gives the borrower enough time to finalise the title consolidations and sell the properties which were already listed for sale.
Details
Loan Amount: $1,662,500 (First Mortgage)
Property Value: $3,325,000
LVR: 50.00%
Term: 6 months prepaid plus 3 months in extensions
Exit
The exit strategy was to complete a consolidation of 11 titles of the property into 4 allotments, each with a building entitlement, and sell the lots to repay the loan.
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