Applicants own a commercial premises valued at $1,200,000 that is leased to a retail outlet for $80.000 p.a. with 3 years remaining. They have a current debt outstanding to a major bank of $650,000 secured by this property. Applicants are looking to access equity $260,000 total in order to purchase additional stock for their own business ($170,000) and to consolidate an outstanding ATO debt of $90,000
Solution: The monthly rental income received covered the proposed monthly loan repayment commitment by 1.22x (ICR), and therefore Loan was approved at $910,000 (70% LVR). This also allowed for the refinance and equity release under our commercial LeaseDoc product by simply verifying serviceability from the Lease Agreement already in place.
