Urgent Short Term Finance for Serviced Apartments and Student Accommodation
Settle or refinance before the next intake, and move to long-term finance once the building is occupied
Experts in strategic, short-term finance
Serviced apartments, student accommodation and hostels are valued differently from ordinary residential property, and some banks limit their lending on them. When a purchase or refinance has to happen before a semester or a season, we can fund it in as little as 24 hours.
We lend on whole buildings, blocks of units and individual lots, including a manager's unit that comes with management rights.
Why banks limit these loans
- •Small studio units can fall below a bank's minimum unit size
- •Some planning approvals or by-laws restrict use to students or short stays
- •Serviced apartments may sit in a letting pool run by a manager
- •Income depends on occupancy, which a bank wants to see over several years
Management rights and the manager's unit
In Queensland, a caretaking service contractor generally owns or leases a lot and runs the letting business from it. Where the manager owns the lot, it is real property and can secure a loan. The management rights themselves are a business, so we fund their purchase with other security, such as the manager's lot or another property you own.
When owners and operators call us
- •A building has to be bought or refinanced before the academic year starts
- •Rooms need refurbishing before the next intake
- •A completed student accommodation building has a construction loan that is due
- •A buyer is purchasing a manager's unit with its management rights
- •The bank has declined because of unit size or title restrictions
In NSW, general and assisted boarding houses must be registered with NSW Fair Trading. Some hostels and share houses fall into this category, so check the registration before settlement.
Funding before the intake
Before the intake. Send the contract or loan details, occupancy figures and the date you need funds. Terms can be agreed within hours.
Valuation. Our valuers inspect the building and review its occupancy.
Registration check. Your solicitor confirms any boarding house registration or by-law limits before you sign.
Settlement. Settlement follows within 24 hours of your signature on the letter of offer.
What to send for an accommodation loan
- •The contract or current loan statement
- •Occupancy figures and any agreements with universities or operators
- •The strata plan and by-laws, for a lot in a larger building
- •Any boarding house registration
- •Your repayment plan
Loan options for accommodation owners
- •First mortgage: over the building or the units you are buying
- •Bridging loans: to settle before a sale or refinance
- •Second mortgage: over another property, for a larger loan
- •Secured business loans: for refurbishment before the next intake, as a lump sum at settlement
Serviced and student accommodation loan terms
| Loan feature | Detail |
|---|---|
| Loan size | $250,000 to $10,000,000 |
| Interest rate | From 9.7% p.a. on a first mortgage, from 11.95% p.a. on a second mortgage |
| Term | 1 to 24 months, interest only |
| Maximum LVR | 70% of the lower of the assessed value and the purchase price |
| Security | A first or second mortgage over the building, the units or the manager's lot. Never management rights or occupancy contracts |
| Settlement | From 24 hours |
Repaying once the building is occupied
Owners usually repay us with a bank or specialist lender once the building is occupied and the income is established, or by selling units.
“Student buildings need to be bought or refurbished before the semester starts, and a bank approval can take longer than that. We lend on the property, so the owner can settle or refurbish before the intake and refinance once the rooms are let. Send us the intake date and the occupancy figures, and we will work back from there.”
Gino Tabila
Associate Director
Frequently Asked Questions
Get an indicative offer within hours, not weeks.
No credit check. No obligation.
Why Secured Lending?
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Get an indicative offer within hours, not weeks.
No credit check. No obligation.
Why Secured Lending?
Are you a broker? Find out why brokers love working with us.
Other Urgent Loans We Fund
Each page covers one deadline: what we fund, what to send us and how quickly we can settle.