Private Mortgages Australia worked with this Borrower to first provide finance for the purchase of a vacant block of land and then to fund the construction of a residential property on the block.
In the initial stage the Borrowers were seeking 60% of the purchase price for the vacant block of land with the intention of seeking building and development approvals to construct an upmarket double storey residential dwelling.
After acquisition Private Mortgages Australia made a variation to the Registered First Mortgage to allow the Borrowers to commence construction on a cost to complete basis.
The Borrower couldn’t get bank finance as they were seeking a short-term loan and were are unable to satisfy traditional lenders’ servicing requirements.
The security on offer was the 725sqm vacant block in Scarborough, a coastal residential suburb on the Redcliffe Peninsula in the north of the Brisbane metropolitan area.
The exit strategy was to sell the property once completed.
Details – Land Purchase
Security Property Valuation: $649,000
Loan Amount: $389,400 (First Mortgage)
Term: 6 months prepaid plus 6 monthly extensions
Details – Construction
Security Property Valuation: $1,104,455
Loan Amount: $328,496 (First Mortgage)
Term: 7 months prepaid plus 5 monthly extensions