Can I Include a Car Park for Collateral on a Loan if It’s Under a Separate Title?
Mortgage House accepts several types of property titles as collateral to secure a loan. It gets tricky when the property is on one title, but its car park is found on another. If a loan applicant is interested in securing a loan with either, our loan specialists work with that title. We can’t accept the car park for collateral if it can be sold separately from the unit. The same goes for the storage areas on separate titles from the unit; there’s the possibility it can be sold separately.
In self-managed super funds, they are funded as individual assets. The bare trustee may also fund the assets individually. Australians use SMSFs to fund their retirement. In order to benefit from the fund, they must make strategic decisions that help the retirement funds grow. In some cases, this means selling off assets that don’t produce an income stream. If their forecasts show that the car park or storage areas produce more revenue by selling them off, it’s the trustees’ fiduciary duty to make that move.
If the car park doesn’t work out as collateral, our team finds alternative solutions with the help of our mortgage calculator.
Car Park for Collateral Conclusion
It’s possible to use a car park for collateral even though it’s on a separate title than the property. Our Mortgage House loan specialists conduct their due diligence to find out if the car park can be sold separately from the unit. If it’s located in Victoria, this regulation is enforced by the LTO. Otherwise, we work to find alternative solutions.