Lannock Cladding Rectification Loans

Combustible cladding is a major issue facing residential and commercial strata properties across Australia. Buildings with combustible cladding are being required by law to rectify or face large penalties as a consequence of non-compliance. Strata owners in all states are increasingly being required by legislation to rectify the cladding and may face large penalties if they do not comply.

Lannock will fully fund all cladding rectification to assist owners with to meet their financial and legal obligations.

A Lannock Cladding Rectification Loan allows owners corporations to:

Access full funding required for all cladding rectification
Fix cladding now at today’s costs
Easily draw down when funds are required
Pay no fees or interest on any amount not used
Make an early repayment in full without penalty, simply contact us to deduct the final interest amount on your next monthly payment
Make their building safe

No initial outlay

Funds available now

Flexible repayments

How a Lannock Strata Loan works

Contact Lannock for a Loan Proposal to fund your strata improvement project. Discuss this with the owners.

Ready to proceed? Lannock will provide a Loan Contract to be tabled and approved at a General Meeting.

As works are completed, the body corporate draws down funds from Lannock to pay contractors.

You can draw as many advances as required, up to the value of the Loan Contract. You only pay for what you use, when you use it.

Lannock Strata Loans

Lannock provides funds directly to the body corporate – we do not lend to the individual owners. Our funding is completely unsecured – there are no mortgages, banker’s liens, charges or caveats. Because we provide funds to the body corporate directly, we do not investigate the financial position of individual owners of units. We do not require owners, committee members or the strata manager to give personal guarantees. The strata manager is not required to certify documents.
Lannock will provide funds for strata improvement projects up to 35% (depending on the size of the strata scheme) of the aggregate market value of the lots in your strata company. Subject to this percentage, there is no specified minimum or maximum amount we will fund.
Lannock will consider variations to this standard criterion in special cases such as where the building is being redeveloped or where additional value is being created.
Advances can be drawn at any time during the Availability Period (which is usually 1 year from date of the Facility Agreement).
Contractor’s invoices need to be provided in support of each Advance. Lannock will remit the funds directly into the body corporate’s account to enable a contractor to be paid, or re-imbursement for a payment already made.
You have the flexibility with each Advance to specify:
• Term of Advance (1 to 15 years)
• Interest Only Period (up to 2 years)