Question 1

What are the benefits to me if the Body Corporate borrows?

Accepted Answer

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. Body Corporate Funding also provides tax advantages for many owners. We recommend obtaining tax advice.

Question 2

Why should we borrow rather than have a long term maintenance funds or a special levy?

Accepted Answer

Borrowing will be cheaper for most Bodies Corporate and most owners, most of the time, when taking into account tax advantages and opportunity cost. 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.

Question 3

What happens if I sell my unit?

Accepted Answer

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.

Question 4

What are the main features of Lannock’s loans?

Accepted Answer

Fexibility 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 15 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.

Question 5

What will you lend us money for?

Accepted Answer

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, unit title insurance, professional services, litigation, asset purchase, bridging finance, working capital – just ask us.

Question 6

What security do you take? Is there a mortgage?

Accepted Answer

None. We make a 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.

Question 7

Do I have to give a personal guarantee?

Accepted Answer

No. Owners do not give a personal guarantee or any personal financial information.

Question 8

How much does it cost?

Accepted Answer

The interest rate will depend on your loan requirements. Please contact us for a Funding Proposal which includes indicative monthly repayments.

Question 9

What fees do you charge?

Accepted Answer

Smaller Loans : $1,000 approval fee and line fees Larger Loans : Will be subject to establishment fees and line fees Additional Fees : Fees and recovery costs may apply for dishonours, defaults, arrears, early termination or other unusual events We keep fees minimal. There are no facility fees, monthly or annual fees, commitment fees, etc. The loan contract provides a complete list of fees.

Question 10

I’m on the committee. Do I have some special obligation if the Body Corporate borrows?

Accepted Answer

No. Being on the committee or being the person who signs the loan documents does not impose any extra obligation on you.

Question 11

Do you have a minimum or maximum amount that you will lend?

Accepted Answer

No, please contact us to discuss your needs.

FAQ

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