Caravan Parks
- Thread starter SamSiam
- Start date
Same thing with hotels and motels. They are freehold land / building and business wrapped together. But they are considered specialised because of their zoning and permitted use. Plus there are limited buyers for these type of assets so lenders are wary of lending against them as the resale market isn't so hot.
Watched a TV show last night.
The owners borrowed from West Bank (?)
When their LVR dropped below the contracted %, they were required to make payment on their mortgage until it was brought into line again.
They were never permitted to view the valuation from the bank.
They and many others on the show lost their businesses.
it was an interesting show. The receiver had some interesting comments about property developers. He obviously wasnt a fan...
Loan contracts can be called in. They arent usually called in while the mortgagor is making the payments, but there are numerous conditions that give the lender that right. On the flip side, mortgagors can refinance, any time they like. Obviously they are a little stuck if their circumstances, or the securities have changed since the initial loan application.
The story didnt mention those businesses who moved their lending to another bank after being tapped on the shoulder, obviously not nearly as newsworthy.
Loan contracts can be called in. They arent usually called in while the mortgagor is making the payments, but there are numerous conditions that give the lender that right. On the flip side, mortgagors can refinance, any time they like. Obviously they are a little stuck if their circumstances, or the securities have changed since the initial loan application.
The story didnt mention those businesses who moved their lending to another bank after being tapped on the shoulder, obviously not nearly as newsworthy.
