Equity release secured by Auckland residential land
For borrowers holding property assets, access to equity can be important when existing debt needs to be restructured.
In this case, the borrower held a large landholding in a residential area of Auckland and required an equity release facility.
The transaction was time-sensitive. The borrower needed a lender that could assess the security position quickly and proceed without the usual delays that can occur when additional valuation material is required.
Finbase was introduced through the borrower’s adviser, with settlement timing a key consideration from the outset.
The facility was secured by freehold residential land in Auckland. Finbase assessed the transaction based on the underlying security position, the borrower’s strength of position, the low leverage profile, and the proposed refinance exit.
Finbase approved a circa $2 million facility over a 12-month term and completed settlement before the agreed settlement date.
The agreed exit strategy is refinance.
Finbase provided a short-term funding solution that allowed the borrower to meet the required settlement timeframe.
Key details
Facility type: Equity release
Loan amount: Circa $2,000,000
Location: Auckland
Security: Freehold residential land
Borrower type: Business owner
Purpose: Equity release to restructure existing debt
Term: 12 months
Exit: Main-bank refinance
Settlement timeframe: Within three weeks
