Buy a land lease home

A Land lease home loan is a secured personal loan to assist you to buy a land lease home, borrowing up to 40% of the home’s purchase price up to a maximum of $250,000.

The loan is called a Chattel loan and instead of a mortgage over your property you provide property security which is logged on the Personal Property Security Register (known as PPSR).

We also take a charge over the Residential Site Agreement you have with the community operator, and we have a separate agreement with the operator that restricts any transfer of the Residential Site Agreement whilst a loan is outstanding.

A land lease home loan allows you to buy a land lease home by borrowing a percentage of the home's value and repaying the principal and interest over the term of the loan.

The amount you can borrow is a function of your age, income & expenses (ability to service the loan), the value of your land lease home, any other assets (like superannuation, shares and investment property) and any other debts (like a car loan, credit cards or an investment property loan).

We encourage you to understand how it may affect your personal circumstances – by talking to friends, speaking to professionals, and using available resources such as www.moneysmart.gov.au.

Before you enter into a land lease home loan we will ask that you obtain independent advice from a financial adviser or legal professional, and that you check with the Services Australia Financial Information Service how it will affect any pension or government benefits you are receiving or entitled to receive in the future. Learn more here.

A balloon payment is an agreed upon lump sum that you will pay to your lender at the end of the loan term. You will be required to pay interest on the balloon amount, however you are not required to pay principal on the balloon amount each month. You can choose to make higher than the minimum repayments which will go towards reducing your balloon payment at the end of the term.

Usually a balloon payment is set if you will have access to funds at the end of the loan term such as access to your superannuation, investments or the sale of other assets to enable you to manage your cashflow.

We encourage you to get financial advice. This will help you determine how best to deploy your home equity to ensure improved long-term retirement funding. A financial adviser can also help structure your financial affairs to maximise entitlements to the Age Pension.

As the advice needs to be independent we can only suggest you speak to a local solicitor or adviser. For further assistance, read more here.

The variable interest rate on a land lease home loan depends on the term of your loan. We do not provide fixed interest rates. Refer to Interest Rates for further information.

Yes, under a land lease home loan we may offer an interest-only loan for a maximum period of 5 years. You pay nothing off the principal amount (the amount borrowed) so it doesn’t reduce.

Your interest rate can rise or fall throughout the term of the loan.

The variable interest rate Land Lease Home Loans offer could be affected by a number of factors, including but not limited to, higher or lower funding costs for the Lender.

Acting reasonably, we can change the pricing of your loan (including your interest rate and credit fees and charges).

Regarding the notice period, we will give not less than 20 days notice of a change to any fees and charges payable and not later than the day on which any change to the interest rate takes effect.

For further details please refer to Terms & Conditions.

Establishment Fee is based on 1.0% to 3.0% of the loan amount - subject to lending criteria and advised on pre-approval and Account Keeping Fee (payable monthly in arrears on each repayment date) is $20 per month. Other fees/charges:

• Documentation preparation costs and registration fees. Not known at the disclosure date - charged at cost.
• Special attendance fee (e.g. variation or substitution of security, discharge of mortgage) is $250
• Fee for provision of paper copies of documents is $25
• Drawdown fee is Nil
• Early repayment fee is Nil.

The loan is called a Chattel loan and instead of a mortgage over your property you provide property security which is logged on the Personal Property Security Register (known as PPSR).

We also take a charge over the Residential Site Agreement you have with the community operator and we have a separate agreement with the operator that restricts any transfer of the Residential Site Agreement whilst a loan is outstanding.

Yes, home insurance is required to be in place prior to contracts being exchanged and settlement.

The Personal Property Securities Register (PPSR) is the single, national online database of security interests in personal property in Australia.

Yes, buyers need to check the PPSR if they are looking to buy an existing land lease home. A PPSR search will show if the land lease home they want to buy is debt-free and safe from repossession.

Land Lease Homes Loans will register a borrower's home as their security on the PPSR in the same way a car is registered as security for a car loan. Homes in land lease communities are on leasehold land titles and a mortgage cannot be taken over this type of title in the same way as a traditional home. To check if the home you are looking to buy is registered as security on the PPSR you will need to do an individual search and enter the existing homeowner's full name and date of birth at a cost of $2.

For information on land lease communities refer to www.landleaseliving.com.

Yes, in a land lease community, you own the home but lease the land where the home sits from the community operator. You pay rent for the right to occupy the site with a manufactured home or a moveable dwelling.

Please do not hesitate to contact us on 1300 555 626 or info@LLHL.com.au.