DFP secured residual stock finance for equity cash out, $600k at a 65% LVR, with a new valuation completed and settled in under 3 weeks.
DFP was engaged by the borrower to obtain a first mortgage residual stock facility to provide equity cash out from a single residual stock apartment from a previous development completed by the group. The client recently commenced a new project and wanted to use the equity in the apartment to start project early works.
The developer was seeking immediate cash-out to commence the new project immediately inline with the development timeframe for delivery.
First Mortgage Residual Stock Facility
DFP arranged a 12-month facility for $600K at an LVR of 65% approved with a new valuation completed and settled in under 3 weeks, with the existing residual stock apartment as security.
- Finance secured – Terms approved, with a valuation completed and settlement completed within 3 weeks
- Loan amount – $600K, Valuation ‘as-is’ $925K = LVR 65%
- Term – 12 months, 3-month minimum term
The client was very happy that they were able to obtain cash out to commence their new project, while still keeping the residual stock apartment on the market, with only a three-month minimum term on the facility.
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