Strata Borrowing

You have the freedom to get important capital works done now. You save money compared with sinking funds and special levies. You only pay for what you use when you use it.
Borrowing will be cheaper for most body corporates and most owners, most of the time. Borrowing enables you to get important works done now rather than wait as you accumulate the money. You get the benefits of improved lifestyle and enhanced capital return now rather than having to wait. You can get all the works done in one go, rather than having to manage a staged project. You avoid potential legal liability for the property not being properly maintained. You avoid the financial distress caused by large special levies. You can be sure you have the funds to do the work rather than hoping that all owners can pay the special levy on time.
The owner at the time that a levy is due and payable has the obligation to pay that levy. If you sell your unit, you will be responsible for all levies due and payable up until the time of sale and then your purchaser will take over that responsibility.
The loan will be a liability of the corporation and so a purchaser should take into account the fact that there is a financial obligation. But there’s more to it than that. The work which is funded by the borrowing will usually increase the value of the unit, and you wouldn’t be contemplating doing the work if the increase in value was not going to exceed the cost. The next important point is that, as borrowing by the strata will probably be your cheapest source of funds (see our White Paper for a comparison of the costs of borrowing, sinking funds and special levies), borrowing to fund the work should add more value to your unit than the other two funding methods.

Lannock Strata Loans

Flexibility and choice. You can draw as many advances as you need. You have the flexibility with each Advance to specify:
– Term of Advance (1 to 10 years)
– Variable or Fixed Rate (you can choose to fix for up to 2 years)
– Interest Only Period (up to 2 years)
And, you can draw as many or as few advances as you need. You only pay for what you use, when you use it.
Lannock will lend for any work or project that the body corporate is allowed by legislation to conduct. This includes; repairs and maintenance, renovations, capital works, building defects, green projects, strata insurance, professional services, litigation, asset purchase, bridging finance, working capital – just ask us.
None. We make an unsecured loan to the body corporate. There are no mortgages, no liens, charges or caveats or any registration or impediment on the title of the common property or of any unit.
No. Owners do not give a personal guarantee or any personal financial information.
The interest rate will depend on your loan requirements, and whether you select a variable or fixed rate for each Advance. Please contact us for a Funding Plan which includes indicative monthly repayments.
Very few. We have an initial $600 approval fee but there are no line fees, facility fees, monthly or annual fees, commitment fees etc. The loan contract has a complete list of fees.
No. Being on the committee or being the person who signs the loan documents does not impose any extra obligation on you.
No, please contact us to discuss your needs.
Yes. Generally there are no penalties for early repayment, however, if you have taken an Advance at a fixed rate, then break costs may apply for that Advance.