12 Jun 2021

Will Mortgage House Accept A Leasehold Property Title in ACT or Crown Lease for a Home Loan Application?

What is a term deposit?

At Mortgage House, we accept different forms of collateral to secure financing for a home loan. Among the alternative forms for collateral that we accept are property titles. Among the titles that we’ll consider is the leasehold property title under ACT or Crown lease. 

To be sure that we’re making a good business decision for all parties, we’ll explore the details of the lease and title. A Crown lease tells us how allowed property use, property maintenance requirements, and the Crown’s right to take back the property. 

We want to ensure that there is no breach of contract before accepting the leasehold as collateral. Crown leases are granted for 99 years. Our loan specialists take a look at the leasehold’s timeline to ensure that there’s enough time left on the title. 

The ACT Government allows transferring the title, but we double-check that there is no transfer restriction or others. Our lending team also evaluates the property’s value. It must exceed 20% of the new property’s value to be a viable down payment alternative. We take a look at future property value forecasts since land and real estate values tend to fluctuate. 

Leasehold Property Title Conclusion

Mortgage House works with home loan applicants who seek to provide a leasehold property title as collateral. Our loan specialists take a look at the details of the lease while establishing the application. It goes through channels to ensure there’s enough value in the property to qualify as reliable collateral. To get started, contact our team, or use our online mortgage repayment calculator with no strings attached.

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