PRE-DEVELOPMENT FUNDING

Client Scenario: This client was looking at developing six units in a popular Auckland suburb. However, their bank was reluctant to provide the pre-development funding they required to get their project moving.

Merx Solution: Being under 70 per cent LVR on their property, and with a sound development project idea in the pipeline, this client was eligible for our pre-development funding package. So, we were able to provide the funds they needed to get design and consents rolling, and finally move their project beyond the starting blocks.

EQUITY RELEASE

Client Scenario: This client was looking at releasing some equity from an existing property to fund the deposit on a property investment that they wanted to make. Despite being at 60 per cent loan-to-value ratio, they couldn’t raise the money through the bank, due to the bank not accepting cashflow from the future investment in support of servicing the loan in the medium term.

Merx Solution: Unlike mainstream lenders, we were able to base our funding decision on the expected income to be generated from the investment. We could see this was likely to work for our client and provided a $150k second mortgage funding facility to be repaid within nine months. This allowed the client to release the necessary equity from their property and move forward with the investment.