Cladding Rectification

Cladding rectification involves identifying, assessing and replacing unsafe combustible cladding to protect residents and visitors.

Buildings with combustible cladding are required to remove the combustible cladding to meet fire safety regulations and insurance requirements. Strata Corporations face large penalties and challenges renewing their insurance policies if they do not comply.

Taking a proactive approach

Coordinating these projects can be complex. Strata committees need to navigate funding challenges and make timely decisions to avoid escalating costs. A proactive approach ensures:

• Safety: Protect residents, visitors, and your investment

• Property value: Maintain or enhance value

• Compliance: Meet legislative and insurance obligations

• Cost savings: Avoid escalating costs

• Community well-being: Foster a positive living environment

Don't delay - swiftly addressing cladding issues ensures your building remains safe and compliant.

Request a Funding Proposal

• Speak with our expert team to discuss your cladding rectification project and funding requirements

• You can bundle multiple projects into a single facility

• Lannock typically provides 100% of the funds required, though our funding works well as part of a funding mix

Approve a Facility Agreement

• Once we tailor a Funding Proposal to your needs, we provide a Facility Agreement and motions to be tabled at your next general meeting

• Vote to approve the resolution and implement the facility

• We will attend owners' information sessions or general meetings, providing detailed information and answering any questions directly

Who can borrow?

• Any Strata Corporation looking to fund the removal of combustible cladding

• A Lannock Strata Loan is provided to the Strata Corporation, not individual owners. We don’t ask for personal guarantees or financial information from owners

Credit Assessment

• Fast process, typically 1-2 days - industry-leading speed

• Requires basic information about the Strata Corporation

• Pre-approval can be arranged prior to the General Meeting

• Credit assessment is completed on the Strata Corporation, not individuals, so no personal financial information is required

• Funding is unsecured so there are no personal guarantees, mortgages, Banker’s Liens or caveats

Approved amount

• The borrowing limit for your Strata Corporation is based on the aggregate market value of lots in your Strata Corporation

• You only pay for what you use, not the full approved amount

• There are no fees or interest charged on unused funds

• The facility typically includes a funding contingency for unexpected costs and project changes

Accessing funds

• Funds are available promptly, eliminating the need to wait for funds to accumulate

• You have access to draw down on the full approved amount as needed - it is not deposited into the Strata Corporation's account on day one

• Draw down funds as required – there is no charge for drawdowns

• 12-month availability period, extendable if needed

Tax benefits

• Strata finance provides tax advantages for some individual owners and the Strata Corporation

  Obtaining tax advice is recommended

Repayments and responsibility

• Simply include repayments in the standard levy cycle like any other contract

• Repayment responsibility stays with the lot, not the owner, when a lot is sold or changes hands - it does not follow the owner to their next investment

• No fee for early repayment