$1.85 Million Private Loan Secured by Lindfield Property
Updated: Sep 17
Assurity Capital settled a $1,849,250 first mortgage private loan secured against a high-value residential property in Lindfield, Sydney NSW.
The loan was used to refinance the borrower’s existing mortgage and release equity for ongoing construction funding. Structured at approximately 65% loan-to-value ratio (LVR), the facility provided the borrower with access to capital needed to continue the construction project.
This Lindfield private lending case study demonstrates how high-value residential property can support a substantial refinance and equity-release facility when ongoing construction funding is required.
Lindfield private loan case study
The transaction involved:
Loan amount: $1,849,250
Loan type: First mortgage private loan
Location: Lindfield, Sydney NSW
Security: High-value residential property
Purpose: Existing mortgage refinance and construction funding
Leverage: Approximately 65% LVR
Outcome: Fast refinance and equity release for project continuation
The borrower required a funding structure that combined mortgage refinance with the release of additional property equity.
Rather than using the facility solely to refinance the existing mortgage, the loan also provided capital to support the continuation of construction works.
What is a first mortgage private loan?
A first mortgage private loan is property-secured finance where the lender holds the first-ranking mortgage over the property.
First mortgage private loans may be used for eligible:
Mortgage refinancing
Construction funding
Property acquisition
Development finance
Equity release
Business funding
Investment property finance
Urgent settlements
Short-term property finance
The lender may consider the property value, location, LVR, borrower circumstances, funding purpose and exit strategy when assessing the application.
How did the Lindfield loan help the borrower?
The $1,849,250 facility served two purposes:
Refinancing the existing mortgage.
Releasing equity to fund ongoing construction.
Combining these requirements into one first mortgage private loan can provide a more coordinated funding structure for an eligible borrower.
The released equity was intended to help maintain progress on the construction project and provide the borrower with access to capital secured against the Lindfield property.
Construction funding may be needed for:
Building works
Contractor payments
Materials
Project consultants
Construction-stage expenses
Completion costs
Renovation or extension work
Costs incurred before longer-term finance is arranged
What does 65% LVR mean?
Loan-to-value ratio compares the total loan amount with the assessed value of the security property.
The formula is:
LVR = total loan amount ÷ assessed property value × 100
The Lindfield facility was structured at approximately 65% LVR.
This means the $1,849,250 loan represented approximately 65% of the assessed value of the high-value residential property.
A 65% LVR may provide a meaningful equity buffer for a lender. However, LVR is only one part of the lending assessment.
The lender may also consider:
The property’s location
Residential property value
Marketability
Existing mortgage debt
Construction status
Proposed use of the released equity
Borrower financial position
Loan term
Exit strategy
Can property equity be used for construction funding?
Eligible property owners may be able to access equity in a residential property to support construction or development costs.
Property equity is generally the difference between the property’s market value and the debt secured against it.
Equity-release construction finance may be considered for:
Completing an existing build
Funding further construction stages
Paying contractors and suppliers
Renovating or extending a property
Managing project costs
Refinancing an existing construction facility
Supporting a development or investment strategy
The amount available depends on the property valuation, existing debt, proposed LVR, lender criteria and the purpose of the funds.
Why might a borrower use a private lender for construction finance?
Private lending may be considered where a borrower requires a more tailored approach to construction funding.
Potential reasons include:
Existing finance is no longer sufficient
The project requires additional equity
The borrower needs to refinance an existing mortgage
Traditional construction finance is unsuitable
The project has complex timing requirements
The borrower has non-standard income
Additional capital is required to continue construction
The property has strong equity but the borrower does not fit standard bank policy
Private finance may provide flexibility, but it can also involve different interest rates, fees and loan terms from conventional bank construction finance.
What does a private lender assess?
A private lender may assess the full transaction, including:
The value of the Lindfield residential property.
The existing mortgage balance.
The requested refinance amount.
The amount of equity to be released.
The construction or project purpose.
The proposed LVR.
The borrower’s financial position.
The property’s marketability.
The proposed loan term.
The exit strategy.
For the Lindfield transaction, the $1,849,250 loan, high-value residential security and approximately 65% LVR formed part of the overall lending assessment.
What is equity release?
Equity release allows a property owner to borrow against available equity in a property.
The funds may be used for an approved purpose, such as:
Construction
Renovation
Business expansion
Investment
Debt restructuring
Property acquisition
Working capital
Development costs
Equity release increases the debt secured against the property. The borrower should consider the interest cost, repayment obligations and the risk of using residential property as security.
What is the difference between refinancing and equity release?
Mortgage refinancing replaces an existing loan with a new facility.
Equity release involves borrowing additional funds against available property equity.
A transaction can include both. In the Lindfield case, Assurity Capital refinanced the existing mortgage and released additional capital for ongoing construction funding.
This combined structure may be useful where a borrower needs to replace existing finance and obtain additional funds at the same time.
What is the exit strategy for construction funding?
The exit strategy explains how the private loan will ultimately be repaid.
Possible exit strategies may include:
Refinancing to a traditional bank after construction progresses
Refinancing into a longer-term construction facility
Selling the completed property
Selling another property or asset
Releasing additional equity after a new valuation
Using business or investment proceeds
Completing the project and transitioning to permanent finance
The exit strategy should be realistic and achievable within the loan term. A borrower should consider future valuation, servicing, construction costs, market conditions and lender policy.
Private lending in Lindfield and Sydney’s North Shore
Lindfield is a high-value residential suburb on Sydney’s Upper North Shore. Property owners in Lindfield and surrounding areas may seek private finance for refinancing, equity release, construction and investment purposes.
Relevant North Shore locations may include:
Lindfield
Roseville
Killara
Gordon
Pymble
Turramurra
St Ives
Chatswood
Willoughby
Lane Cove
The wider Upper North Shore
Property value and location can be important factors in private lending, particularly where the loan amount is substantial. Each application is assessed individually.
What documents may be required?
Depending on the transaction, the lender may request:
Identification
Existing mortgage statements
Property ownership information
Valuation information
Details of construction works
Building contracts
Construction budget
Invoices or cost estimates
Assets and liabilities
Income or business information
Details of the proposed equity release
Exit-strategy evidence
The documentation required will depend on the property, loan amount, construction stage, LVR and lender requirements.
Assurity Capital’s Lindfield private lending solution
Assurity Capital settled a $1,849,250 first mortgage private loan secured against a high-value residential property in Lindfield, Sydney NSW.
The facility refinanced the borrower’s existing mortgage and released equity for ongoing construction funding. It was structured at approximately 65% LVR and provided the capital required for the project to continue.
Assurity Capital provides first mortgage private loans, second mortgage finance, construction funding, equity release, secured business loans and other property-backed lending solutions across Australia.
To discuss a high-value property refinance, construction loan or equity-release facility, contact the Assurity Capital team.
Finance is subject to assessment, security, eligibility, lender criteria, fees and formal approval. This case study is general information only and does not constitute financial, legal, accounting or credit advice.
What was the Lindfield private loan?
Assurity Capital settled a $1,849,250 first mortgage private loan secured against a high-value residential property in Lindfield, Sydney.
What was the loan used for?
The facility was used to refinance the existing mortgage and release equity for ongoing construction funding.
What was the LVR?
The loan was structured at approximately 65% loan-to-value ratio.
Can I refinance a mortgage and release equity at the same time?
A new private mortgage facility may, in some circumstances, refinance existing debt and release additional property equity for an approved purpose.
Can property equity be used for construction?
Eligible property owners may be able to use available property equity to fund construction, renovations or development costs, subject to lender approval.
Can high-value residential property secure a private loan?
High-value residential property may be accepted as security for eligible private lending transactions, subject to valuation, location, LVR and lender criteria.
Is private construction finance more expensive than bank finance?
It may be. Private construction finance can involve different interest rates, fees and loan terms from conventional bank lending.
Is Lindfield eligible for private lending?
Eligible borrowers may be able to obtain private property finance in Lindfield and across Sydney’s Upper North Shore, subject to assessment and formal approval.
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