A second mortgage loan for Partner exit gives you the control, speed, and discretion to buy out a partner or shareholder without disrupting your primary banking. At Secured Lending, we’ve advised and assisted borrowers with this partner exit many times, facilitating over 200 strategic second mortgages. If timing is tight, we can help you move fast with a second mortgage loan for Partner exit. Assess your scenario today.
Why a Second Mortgage for a Partner or Shareholder Exit Works
A second mortgage sits behind your first mortgage, using the available equity in your residential or commercial property to raise capital. This lets you complete a buyout while keeping your main facilities and day‑to‑day banking intact. You avoid a full refinance, which can be slow and invasive, and you preserve relationships with your incumbent bank.
Key Benefits You Can Bank On
- Speed and certainty: When you need capital for an urgent settlement, a second mortgage can deliver same day settlement or funding within 24 hours once documents are in order. That’s ideal for negotiated timelines that can’t slip.
- Keep your first mortgage: You maintain existing rates, covenants, and accounts with your bank. The second mortgage is purpose‑specific capital that sits alongside, not instead of, your current lending.
- Control the deal: You can structure staged payments to match the exit deed, escrow a portion for adjustments, and prove funds early to reduce negotiation friction.
- Non‑dilutive: You retain equity. You’re not issuing new shares or bringing in outside investors to solve a short‑term need.
- Cleaner process: A targeted facility with a clear exit strategy (refinance, asset sale, dividend recap) avoids the complexity of a whole‑of‑bank renegotiation.
- Fit for time‑sensitive scenarios: Partner retirement, a change in strategy, or resolving a deadlock. When it’s urgent or even an emergency, you need a lender that can move.
Where a Second Mortgage Suits Best
- You have usable equity in property and want to borrow against it rather than sell assets.
- You want to protect your main banking relationships and avoid resetting covenants.
- You have a defined exit plan within 3–24 months, such as a refinance or planned sale.
- You need bridging loans style flexibility to line up settlement dates across parties.
How a Second Mortgage is Structured for a Buyout
- We review: the exit deed, payout schedule, and security position behind your first mortgage.
- We structure: facility size, term, interest‑only repayments, and drawdowns aligned to milestones.
- We coordinate: valuations, first mortgagee consent, legal documentation, and settlement funds flow.
- We confirm: your exit strategy, timing, and any undertakings to counterparties.
- We arrange: verification and settlement so funds are available when you need them.
What It Can Cost and How to Weigh It
Second mortgages are priced for speed and flexibility, not long‑term holding. We can model scenarios at an interest rate of 11.95% so you can assess affordability alongside fees and term. You’ll balance the carrying cost against the value of timing, ownership control, and avoiding a disruptive refinance. For many owners, the premium is justified by lower deal risk and cleaner execution.
Security and Acceptable Collateral
With Secured Lending, you can leverage residential or commercial property as collateral/security. We don’t accept obscure assets as collateral, so there’s no reliance on equipment, vehicles, crypto, or unsecured business value. This keeps underwriting focused and efficient.
Private Lender, Australia Wide
As a Private Lender in Australia and a non-bank lender, we operate nationally: Sydney, Adelaide, Melbourne, Brisbane, Perth, Gold Coast, Canberra. We understand local property markets and can move quickly across jurisdictions. Whether it’s a single title or a portfolio, we review the equity position, confirm consents, and execute on the agreed timeline.
Why Secured Lending is a Fit for Partner Exits
- Speed: same day settlement and funding within 24 hours available once documents and consents are complete.
- Capacity: you can often borrow up to $10 million, subject to security and serviceability.
- Fit‑for‑purpose products: secured business loan facilities, second mortgage facilities, and flexible bridging loans to align with settlements.
- Practical support: we review, structure, coordinate, confirm, and arrange each step so you keep momentum.
- Calm process: direct decision‑makers, clear terms, and focused due diligence designed for business owners.
How We Can Help
We’ve provided strategic lending advice for partner and shareholder exits in the past, and we’ve facilitated over 200 strategic second mortgages that helped owners settle on time and keep control. If the opportunity or deadline is close, we’ll assess your scenario quickly, confirm available options, and structure a facility that matches your exit plan. Secured Lending is a short-term lending solution you can rely on. When you’re ready, our team is here to help you move quickly and confidently. Our team specialises in urgent short term loans solutions such as bridging finance, second mortgages, and caveat loans.
FAQs
1) Will my bank need to approve the second mortgage?
Usually yes. We coordinate first mortgagee consent or an intercreditor deed where required and manage that process to keep timelines intact.
2) What property can I use as security?
Residential or commercial property. We don’t accept obscure assets as collateral. Clear property security keeps approvals straightforward.
3) How fast can I access funds?
With documentation ready, we can achieve same day settlement or funding within 24 hours for an urgent or emergency partner exit.
4) How is pricing set?
By security quality, LVR, location, term, and exit strategy. We can model an interest rate of 11.95% to test affordability before you proceed.
5) What exit strategies are acceptable?
Refinance to a major bank, asset sale, dividend recapitalisation, or pre‑agreed distributions. We’ll align the facility to your timeline and outcomes.
