Have you been fortunate enough to be a position to buy a property from family? I can’t say that I have been although I do dream of living in my parents house one day. Emma however has other ideas!
A current client of mine is lucky enough to be able to purchase a family farm. I had been working with this client for many years with previous purchases including a guarantor loan with their parents. For this particular loan we started looking at about 12 months ago. The issue we had to work around was approx. 18 months ago they had quit their regular jobs and started their own business. Why is this an issue? Lenders require you to hold your ABN for a minimum of 2 years. There is a handful of lenders who will use 1-year tax returns for servicing however most want 2 years of tax returns.
They have been working towards buying a property from a close family member for basically 12 months. I have worked closely with their accountant, analysed their tax returns plus helped them set up a strategy to get their savings up. The other key area we helped was working with the family member’s conveyancer to get the property valued and a sale price agreed upon.
When putting the application together we had to go above and beyond with our supporting documents and loan notes as the loan was still outstand of lender policy. He had only been in his business for 18 months (not the regular 2 years).
It was approved yesterday!
Related Tag: Home Loans Lennox Head