LEGAL MATTERS
PIXABAY
Bank requirements when considering a development application
By Shereen Moloto of the Banking Association South Africa
The residential property market continues to display a high level of resilience even in the face of the Covid-19 pandemic . On-going bank lending and support for financially strapped homeowners , residential construction , home purchases , maintenance as well as the improvement of homes has been a key component contributing towards the resilience of the residential property market .
Mortgagees ( banks ) are continuously looking for
ways to optimise their systems and processes , seek out opportunities for collaboration and enhance client experience . The interaction between the property industry and banks is an important feature for access to housing finance for end users , housing delivery and the broader property development ecosystem .
Access to information , more especially for new entrants into the development space , will potentially safeguard the longterm growth of the property industry , promote a collaborative learning and knowledge sharing environment and enhance the housing delivery value chain . The checklist provided here is not intended to outline the specific requirements of any one bank , but it can be used as a supporting tool when developers are putting together development finance applications .
Banks have minimum requirements with which all developments should comply . When it comes to affordable housing developments , bank ’ s requirements are no different to that of other market segments . This includes the need for all municipal services to be available and functional . As an end-user provider of mortgages , it is a requirement of all mortgagees that housing developments have full services ; like tarred roads , curbs , street lights , water and electricity . This is no different from any other development or other market
22 JANUARY - FEBRUARY 2021 SAAffordHousing saaffordablehousingmag SA Affordable Housing www . saaffordablehousing . co . za