Hi all,
We are in a similar position regarding the replacement of windows. Block of 24 units in NSW. We already have a strata loan, with 4 years to run for the replacement of the roof last year. Some of our owners want to pay for their own windows to be replaced. The benefits to them are that they get the work done now rather than waiting until it is their turn to have the work done in a couple of years time. The benefit to other owners is that timeframe for replacing windows in other units will be shorter, the money we borrow will go further to replace windows for other units. However, we have been advised that those who want to pay upfront for their own windows, will still have to contribute towards the repayment of the loan. The owners are all responsible for the loan debt and it is not possible (nor legal?) to exclude any owner from the repayment of a debt which is owned by all owners. Added to this is that the strata fees of all units is taken into account when working out income of a scheme and whether a loan will be granted. Our advice to date has been as follows, if those owners who have paid upfront are not part of the payment, then it is unlikely to be granted for the remaining owners.
I would appreciate hearing from anyone whose owners corp has had a few owners pay upfront for a big item as well as taking out a strata loan that is to be repaid by only some of the owners…(excluding those owners who paid upfront).