Client information

CRITERIA:

There is no actual standard criteria that we are able to provide due to the vastness of our lending base we rather view each application on it own merits. However our lending is based on fixed property, equity, affordability and with a view at the end of bridging an application that there is ability to refinance or the clients have indicated there willingness to sell.

Our preference therefore is to receive a quick call or a 1 page summery of an application we can then give an immediate indication of the possibility of us being able to assist immediately.

WORKING WITH BANKABLE CLIENTS:

If we are funding a client into a standard, conforming bankable loan the general rule is there are no additional fees charged by Legend and we are paid directly by the bank (ie; no charges for our work). If there is additional work involved clients will be quoted on these prior to us proceeding. The advantage to the clients in using a broker is that your "shopping for finance is done for you".

WORKING WITH NON BANKABLE CLIENTS:

For whatever reason a client is referred to us or approaches us our aim at the end of the day is for the clients to have permanent finance at reasonable rates. Due to adverse credit, financials and payment history this is not always available immediately. We therefore provide interest only bridging finance to establish a good working payment history and review the same annually in an attempt to coordinate a more permanent facility. Usually this occurs after approximately 3 years. However we can only work with the clients if they commit themselves and allow us to work with them.

EXAMPLE 1:

Mr & Mrs X approached our offices. Mr X had lost his job due to the company moving its offices from Auckland to Wellington and simultaneously downsizing. Mortgage protection insurance paid out late and the mortgage went into arrears and penalties started to accrue. The clients naturally were served with a PLA notice.

We refinanced the clients providing a bridging loan with no payments for 6 months while Mr X sort and found employment and stabilized the family financially. Mr X then began paying his mortgage and established a good payment history. Using the new payment history and his now stable employment we obtained a new permanent loan. The loan was extended due to their affordability to pay for renovations and much needed maintenance on their home.

EXAMPLE 2:

Approached by elderly couple who had assisted family members as guarantor to loans not comprehending that these loans had been registered on the title of the property and they were liable to pay the loans as guarantors now that the clients had defaulted. Affordability was an issue.

All debt was amalgamated into one loan, independent legal advice advised and a budget service employed. After a year of good payment history the client were given a 10 year interest and principle nominee company loan at 1% above floating bank rate. (this due to there loan not quite meeting banking criteria but never the less being quite affordable at the rate obtained)

EXAMPLE 3:

New company's with no books created for the purpose of a development / subdivision. Bridging finance offered through development / subdivision until equity improved and a confirmed cash flow established then made bankable.

Please note applications are looked at individually and advances are considered on a case by case scenario dependent on full disclosure and viability.

EXAMPLE 4:

Variety examples in the farming community the two most common are as follows:

Conversion:
Converting the farm usage to another ie; sheep to dairy. Bridging funding is given using the equity in the property until the unit is operating and viable and therefore bankable.

Poor season:
There is a natural 7-year cyclic patterns in all farming areas. Where there are "lows" and "highs" on the market. During the seasonal "lows" equity can be utilized in the property to accommodate cash flows.

Please note applications are looked at individually and advances are considered on a case by case scenario dependent on full disclosure and viability.

RENOVATIONS:

Bridging finance over a short period will be considered to assist with renovations. Other than the standard information required with any application a fixed price contract with a current and future valuation is a must.

The application ease in obtaining the bridging finance will improve with a pre-approval in place for a take out finance on the future valuation.

DOCUMENTS:

1) General Questionnaire
2) income and expenditure
3) statement of position
4) Privacy act waiver Please complete and return.

ALSO REQUIRED:

1) proof of income
2) 3 current bank statements
3) registered valuation or Government Valuation
4) latest rates demand

Please note that some lenders prefer requesting a registered valuer of their choice or even just getting a real estate appraisal. So please check with us before instructing a valuer.