Hi,
Does anyone have any advice on lenders who will lend for a high risk property?
Background -
We wish to purchase a 100 yr old bluestone house on 3 acres in the Barossa Valley. Contracts have been exchanged and we (very stupidly) did not opt for a "subject to finance clause". We were at that stage confident that ING (our current lender) would give us approval (conditional approval had been given). They have since had a valuation and have escalated the process to their credit risk team. We withdrew our application at this point, as we had heard colloquially that ING are notorious for not seeing "outside the box".
Purchase price is $350K and LVR is 80%
Loan amount $280K
Serviceability is not an issue.
Land tax valuation - $280K
Council rates val - $445K
Have approached a mortgage broker through Aussie and are awaiting the val thru ANZ. Our application with ANZ was conditionally approved in 3 hours
I guess the crux of the matter is that the house needs work. We are aware of this and we plan to do this work as soon as the sale settles. There are cracks in the walls, but there wouldn't be a house in the Barossa of the same age that doesn't have cracks. We currently live in NSW but it is our plan to move into the house in 18mth-2yrs and that it will be our "forever home". There are limited blocks of this size in the Barossa, and currently the minimum block size for a new build outside the town boundary is 100acres. We feel there is real value in this property.
I guess I am wondering if anyone has any advice on which path to take if ANZ reject the loan. Are there any lenders that are more likely not to need to do a full valuation as part of the loan process? I have heard that there are some who will just lend on the basis of the contract of sale, I am not sure if this is true - can anyone clear this up?
Thanks in Advance
Marieka