Strata Corporation Loans

 

Condominium properties, legally referred to as “strata corporations” in British Columbia, often face extraordinary expenses when unexpected events call for major repair or maintenance of their common property. This can substantially deplete reserve funds and could impose unwelcome, lump-sum special levies.

Another growing problem as condominium properties age is the higher cost of necessary upkeep. Postponing required work ultimately increases costs even more.

1 City Financial Ltd. offers flexible financing at best market rates to strata corporations for exactly these circumstances.

This financing allows strata corporations to provide their members with the option to pay large repair or maintenance bills over time, in convenient and manageable monthly installments.

For more information, please refer to our Frequently Asked Questions section or contact us by email or telephone to learn more about this type of strata financing.

 

Strata Loan Benefits

 

Benefits To The Strata Corporation

  • more flexible than a lump sum special levy
  • allows some members to pay a special levy in full, while others pay monthly
  • no delay of necessary repairs
  • timely completion of repairs keeps costs from growing
  • cost of major projects can be spread over a period of years
  • Flexibility of payments makes passing a 75% vote approving work more likley

 

Benefits To The Strata Members

  • no need to deplete personal savings
  • no personal credit application or personal credit check
  • no bank visit
  • no new mortgage costs
  • no mortgage increase
  • not registered on your title
  • not a personal loan, no additional debt shows on your credit report
  • no personal guarantees
  • easy monthly payments
  • allows for the “pass through” of costs to a  purchaser, who benefits from the work as well

 

 

  • Strata Loan Examples

    This 130 unit strata had the opportunity to buy out the long term lease on their geo-thermal heating\air conditioning system, saving them over $1,000,000 over the life of the lease. The buyout amount was $3,000,000, loan component was $2,450,000
     
    This 102 unit strata required roof and siding repair together with repainting of fascia. Total budget $786,000, loan component was $555,000
     
    This 9 unit strata required replacement of the full building envelope, roof, windows and decks. Total budget $650,000, loan component was $334,000
     
    While this 260 unit strata required a complete common area update, both interior and exterior. Total budget $6,000,000, loan component was $3,500,000.
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