Management Rights Refinancing

When you enter into a Management Rights loan contract, the Bank that you chose would have given you the best option at that time. Over the years you might want to access equity or want further Interest Only options that your current Bank wont offer. We have access to a number of Banks that will look to refinance your existing loans for better rates or terms.

Things to consider include:

Costs

The cost to refinance a management rights loan does come with a few costs that you will need to consider and we will consider too before giving you advice. However if you are able to make a huge saving on the interest component of your loan or if the new Bank offers you better terms, this may still be a good option.

•  New Valuation
•  New Loan Fees
•  Accounting Fees
•  Legal Fees

Better Terms

The main reason that many of your clients refinance is for a cheaper interest rate or better terms for their loans.

•  Savings on interest
•  Longer terms
•  Lower payments
•  Interest Only extension

New Bank Accounts

Your new Bank will usually want you to bring your trading account and your trust account to the new Bank. This will mean notifying all of your tenants of your new details. The Bank you refinance to will give you plenty of time to organise this and would not expect it to happen immediately.

If you would like to know more about management rights refinancing give us a call or use the enquiry form to contact us.