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Finance Q for Brokers - Townhouses on One Title

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  • Finance Q for Brokers - Townhouses on One Title

    Hi Team,

    Banks dont seem to like my 6 town houses on one title.
    Why is that a problem.
    If they were all cross lease and units 1/6 through to 6/6 then they seem to like it as security.

    It seems to cause shock in their credit teams, at the thought of using it as security.

    But worse than that.
    Even when they are looking at lending on other normal properties.

    When their credit teams see there is one property with 6 town houses on the one title.

    That also causes a problem.

    Any ideas ?


  • #2
    Maybe its the risk of trying to find a buyer who wants to buy 6 houses at once, should you default. Would imagine that could only be of interest to investors (a declining group under this govt), whereas 6 crossleases can be sold off to 6 home buyers/ FHB.
    So your issue is how can you demonstrate to the bank that they would be able to sell it.
    Maybe look at cost of splitting to crossleases, or unit title