Development Finance Partners (DFP), recently assisted clients in refinancing their big-four bank mortgage. The mission was to release equity as cash out in order to pay for development approvals for a future property redevelopment.
Our clients purchased their home in Belleview Hill with the intention of eventually redeveloping it into a duplex. Following two years of research and planning, they were ready to start the development and approval process, and looked to leverage the equity of the home following a market uplift post purchase in 2020.
To understand the extent of the equity held in property, DFP sought market feedback from various valuation firms. Following this due diligence, we sourced and retained a valuer to achieve a valuation result of $2.875m. higher than the original 2020 purchase price. We used the equity in the property to provide cash out, allowing the client to progress their development planning.
- Finance: 70% LVR based on uplifted value
- Loan amount: $4,550,000
- Term: 12 months with the ability to extend if needed
Once development approvals are achieved, DFP can refinance the current loan into construction finance to assist with the next phase of the project.