Browse Forums Home Finance Re: Unconditional loan on unregistered land 2May 06, 2013 3:52 pm Hi Ruby, Yes there will be no problem getting an unconditional loan approval on unregistered land through RAMS provided everything stacks up. But just be careful that your unconditional approval doesn't expire before the land is registered - approvals usually only last 3 months. If the finance approval lapses you may need to apply for a new loan. Building in Brisbane with Vernal-Corner & Buchanan https://forum.homeone.com.au/viewtopic.php?f=31&t=73636 Re: Unconditional loan on unregistered land 3May 06, 2013 4:18 pm Thank you so much for your reply. See the problem I have at the moment. Is that RAMS gave us a conditional approval and told us we couldnt get an unconditional approval without the land registering first (due to valuation). Our solicitor believes we can get an unconditional approval... So I was wondering now it went down for others. Land is a big development and due to register in August. Re: Unconditional loan on unregistered land 4May 06, 2013 6:15 pm The valuation is usually the last thing to be done on a finance application. Do you know if the valuation been completed? If not, there should be no reason it can't be done. All the valuer will need is a copy of the land contract, a copy of the disclosure plan and permission to access the site by the civil contractor so he or she can take a photo. Given the land isn't due to register until August I would be asking the bank for a 6 month approval in case the civil works, final council approval or titles office registration take longer than anticipated. Building in Brisbane with Vernal-Corner & Buchanan https://forum.homeone.com.au/viewtopic.php?f=31&t=73636 Re: Unconditional loan on unregistered land 5May 06, 2013 7:35 pm Thank you. that's a great help. Our finance guy through RAMS just said that it couldnt be valued until after registration. That's all we need as everything else you noted has been supplied and approved. I know for a fact that another RAMS franchise values the land and does unconditional approval but our finance guy is saying they can't. I would imagine it should all be the same across all RAMS. I think the only thing I can do is go back to our guy and tell him that he CAN value the land now. Thanks for your help!!! Re: Unconditional loan on unregistered land 6May 06, 2013 8:00 pm I'm not familiar with RAMS policy but most likely their thinking is that as the land isn't expected to title until at least 3 months away, any valuation done now will expire by then. At the very least any loan offered will be conditional to land being registered (as the lender needs some form of security which at this point in time doesn't actually exist). Cheers Tom The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19112 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 35330 How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 11933 |