Borrow from Midlands

Equity release

If you’re wanting to unlock the equity in an existing residential or commercial property by borrowing against it to fund your next property venture, you’re in the right place. We’ve helped clients release equity to fund a business purchase or provide increased working capital to grow the business. We’ll take the time to understand your unique lending situation and tailor make a lending solution that make good financial sense for all parties.

Midlands Equity Release Fact Sheet

Security

All loans are secured by a first mortgage.

Interest Type

Floating interest rates only

Minimum Loan Size

Our minimum loan size is $400,000

Term

We offer terms of up to 2 years, the average term being 12-18 months

Interest Rates

Our interest rates currently start from 9.50% per annum and are adjusted for risk and subect to change. The rate charged will depend on your financial circumstances taking into account:
• How much you want to borrow
• The term of your loan
• Your other financial commitments
• Your credit history
• Loan to Value Ratio of security offered
• Strength of exit

LVR Guidelines

• Residential Land and Buildings in fee simple: up to 75%
• Residential Vacant land in fee simple: up to 50%
• Commercial Land and Buildings in fee simple: up to 66.7%
• Commercial Vacant Land in fee simple: up to 50%

Types of properties

Residential properties

How long does it take?

We can normally approve loans in under 24 hours and provide funds within 48 hours of all conditions precedent being met, giving you fast access to the funds you need

WHAT WE MAY NEED TO REVIEW AN APPLICATION:

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Fully completed, signed & dated application (including signed Applicant’s & Guarantor’s Agreements)

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Commentary regarding the purpose of the loan, term required, & intended exit strategy.

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Documentation to support identification & NZ Residency / Citizenship status.

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Verification of income (recent payslips / Employment Agreement / IR3 / signed financials or similar).

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Registered Valuation (addressed to FM Custodians Limited).

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Evidence to support the origin of your contribution to the proposed deal (source of deposit funds etc)

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Trust Deed(s) – if applicable

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Sale & Purchase Agreement(s) – if applicable

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Tenancy Agreement(s) – if applicable

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Deed(s) of Lease (for tenanted commercial properties)

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NBS Report confirming seismic rating of commercial properties

Equity release Case Study

Our property developer client was eager to move onto her next project, but hadn’t fully sold the previous one. Midlands was able to provide an interest only equity release from the last remaining property which was on the market for sale. Eliminating this downtime was invaluable to our fast moving client.

Loan Type – Residential
Purpose – Equity release for development
Location – Auckland
Loan Amount – $890k plus fees
Fees – 1.50% added to loan
LVR – 73% (higher than usual due to quality and location)
Pricing – 9.50% p.a.
Servicing – No income from security property, so assessed wider group
Term – 12 months
Exit – Security property is on the market for sale