01 · The first project
A property purchased, but no finance solution.
The client had bought a house unconditionally, intending to demolish it and rebuild. Four banks had declined his application, and his existing broker had told him it could not be done.
We approached six further lenders. The challenge was finding one that could support both the required borrowing capacity and the valuation of the completed development. Some lenders could provide the capacity but their valuation fell short; others accepted the valuation but could not lend enough.
It took six months to find a lender whose policy accommodated both. The first project’s finance settled, allowing the client to proceed with the build.
02 · Projects two to four
Completed projects helped fund the next deposits.
Equity released from each completed project funded the deposit for the next. Three further knockdown rebuild duplex projects followed, each financed off the back of the previous development.
The lesson was not simply to repeat the same loan. Each new project still needed the borrowing position, valuation and lender policy to work together.
03 · A more complex fifth project
Two titles, four dwellings and a policy barrier.
The client then bought two neighbouring houses unconditionally, without first consulting us. He planned two duplexes—four dwellings across two titles—to be built simultaneously under one construction facility.
Every major bank approached declined on policy, rather than borrowing capacity or valuation. There was no exception pathway, and settlement was approaching.
We worked through the non-bank market and found a lender willing to assess the proposal on its merits. The assessment considered his four completed projects, documented development intentions and the overall strength of the deal. Finance was approved for the fifth project.
The outcome
Four duplex developments were completed with our assistance. Finance was then approved for a fifth project involving four dwellings across two neighbouring titles.
What made the difference?
- Matching capacity with valuation. A positive result on only one would not fund the first project.
- Understanding the policy barrier. A stronger income position alone would not resolve the fifth project's construction-policy restriction.
- Presenting the relevant evidence. The client's completed-project history and documented plan mattered to the alternative lender's assessment.
Planning your own knockdown rebuild?
Speak with a broker before signing an unconditional contract. Share the purchase details, proposed build, available funds, existing loans and intended sale or refinance plan. We can assess the financing requirements and identify policy or valuation barriers before you commit.
This is one client's experience, not a guarantee of approval or a similar outcome. Lending remains subject to the lender's assessment, valuation, policy and terms. Equity release increases debt and depends on the financial position at the time.