Bayleys Canterbury Commercial is pleased to announce changes to the New Building Standards (NBS) funding criteria for Canterbury commercial property on behalf of BNZ.
Previously, strict funding criteria for commercial property lending had been a roadblock for buyers and sellers alike. Banks would not offer new lending for property that had an NBS score of less than 67% (with some consideration given if borrowers could present a costed, time-bound plan to increase the rating to this level or higher).
As a result of this, it was difficult to be funded for retail and industrial property built between the period of 1976 and 1991. These properties were assumed to have an NBS score of 34% and a Detailed Engineers Evaluation (DEE) was required to prove otherwise.
From today, BNZ has changed its criteria and can now offer funding for all retail and industrial property post 1976. These properties have an assumed NBS score of 34% and will not require a DEE.
For retail and industrial property pre 1976, a DEE is required to confirm the NBS is over 34%.
“Until today, retail and industrial properties built pre 1991 were deemed virtually unsalable in Canterbury.”
“Banks held a one-size-fits-all approach towards funding which was unfair for everyone involved.”
“BNZ’s changes will open doors for many investors who can now be financed to purchase these old, but safe properties.”
Contact Harry van Tongeren to find out more information.