Why do people subdivide property?
People may choose to subdivide their property for a variety of reasons. Customers who are sub-dividng may be planning to:
Develop the created lots
Rent the lots or development of properties
Sell the created lots
What are the costs of subdividing?
Some of the costs you can expect include:
- Surveying fees
- Application and planning fees
- Legal fees
- Development fees
- Infrastructure fees
- Valuation and consent costs
Each local council will treat subdivisions in their own way
There are many different factors to take into account such as zoning laws, requirements for specific permits, or development plans. If you’re thinking of subdividing your residential address, you will need to let us know what your security and living arrangements are after the sub-division is complete. Any modifications to the security on your loan need to be approved by RedZed before you begin.
How do you get started?
To begin, you or your nominated representative (conveyancer/solicitor) will need to request and complete the ‘Subdivision Form’ with our Client Services Team. Once your request has been received we will contact you to walk you through the next steps in the process!
What’s next on your loan journey?
Every step matters, keep building your understanding with more tips, insights, and know-how to help you manage your loan with ease.
What is a partial discharge?
A partial discharge happens when your loan is secured by multiple properties, and you ask to have one (or more) of those properties released without paying off the full debt.
How does reducing your loan limit affect your loan?
A loan limit is the maximum amount a lender allows you to borrow based on several factors like your financial circumstances, the credit assessment undertaken, and your financial history.
What does a security swap involve?
Security for a loan is the property used as collateral, and swapping security means replacing that property with a different one.