A Lannock Strata Loan is an unsecured loan provided directly to an owners corporation (also known as a body corporate or strata title community). This enables the owners corporations to access funds immediately to complete project work like renovations, repairs, general maintenance, green projects and more. A strata loan can also be used to fund a building’s insurance premium and for professional services such as litigation and consultancy.
What are the features of a strata loan?
Lannock’s strata loans are the most comprehensive available in the marketplace and are designed to give owners corporations the flexibility and confidence needed when funding is required.
An owners corporation only pays interest on the outstanding loan balance, not the amount of the loan facility meaning that you only pay for what you use, when you use it.
Owners Corporations are not charged any of the following fees:
- Line fees
- Facility fees
- Unused limit fees
- Commitment fees
- Settlement fees
- Monthly/quarterly fees
- Administration fees
- Termination fee
The owners corporation specifies the terms of each advance as part of their loan facility
- A variable or fixed rate and the interest only period (if any)
The owners corporation can draw on the facility as many times as needed at any time during the Availability Period (this is usually 12 months, but can be extended).
Payments (principal and interest) are made by a simple monthly direct debit from the corporation’s bank account
Ease of use
As there is no requirement for individual owners to remortgage or refinance, we do not require personal guarantees or mortgages from owners or committee members. You do not need to provide the financial information of individual owners
- The people who execute the facility documentation do not sign in any personal capacity
The loan is with the corporation and therefore the debt stays with the corporation.
How to apply for a Strata Loan
Applying for a Lannock Strata loan is quick and easy. We can provide you with a Lannock Strata Loan proposal which outlines all the information needed to take to your next annual general meeting (AGM) or executive general meeting (EGM).
Let us know:
- Your strata plan number and building address
- The number of lots in your building
- How much you wish to borrow. Lannock has a large lending capacity so feel free to get in touch to further discuss your funding needs
- What the purpose of the funding is for
An owners corporation might wish to consider other forms of funding such as raising a special levy or utilising funds from an existing capital works fund (formerly sinking fund).
Read more on why you should consider borrowing and the other funding options available.