Recently a client of ours found themselves in a challenging situation during the build of their home. After purchasing land, the client was granted a loan for the new build based on the design of the home and value of the property, and building went full steam ahead. The slab was put down, the brick work was completed, and the roof was putted. It all seemed to be going to plan.
However, trouble then arose when the bank received the first invoice from the builder, and consequently sent out a valuer to inspect the property. What the valuer picked up on was that the home design had changed and the internal size of the property had reduced. It is ok to change the plan as long as you keep the bank up to date with any changes. Changes to the plan can in fact change the value of a home, which in this case it did.
Our clients now had a half-finished property, and a bank that was giving them grief with nowhere to turn. The clients were referred to us at Launch Finance, so we looked at their requirements, advised the couple on what they needed from the builder and what to tell them to buy some time while we negotiated with their current lender. Banks hate to take over partly built homes, so the most suitable option for the client was to try and remain with the current lender.
After weeks of negotiating and going back and forward, re-valuations and discussions with builders, banks and clients, Launch Finance was able to get a new approval from the same bank to continue the build. It was a great outcome for the client and one that meant that they could finish the build and realise their dream of building a new home.
If you, or someone you know, are currently undertaking the process of financing a new build, get in touch with us today. Our expertise and experience could save your build from weeks of delays, and you a whole lot of headache.