Layburn Hodgins Solicitors Nominee Company Limited
Layburn Hodgins have been successfully arranging mortgage lending and investing through our Nominee Mortgage Company since 1971. Currently we are investing between $8 -10 million of our clients’ funds.
Governance
All lending through the Nominee Company is strictly governed by the rules of the New Zealand Law Society. Under these rules, we are able to lend up to a maximum of 66% of the registered valuation of the property. All lending is approved by the directors.
Security
All mortgages are secured over real property. The normal procedure is that the report of a registered valuer, together with details of the borrower is submitted to potential lenders who assess for themselves the investment.
The Lending Procedure
Approved mortgage applications are submitted to clients we know have funds available. We write to them in a detailed letter advising the mortgagor, guarantor, security, legal description, valuation details, principal sum, advance date, maturity date, interest rates and interest due dates. We enclose a copy of the valuation and authority to invest.
The majority of mortgages are for terms of up to 3 years although shorter terms are available. All mortgages are interest only with interest payable quarterly in arrears in February, May, August and November. On expiry of the term the mortgagor may wish to renew and the investor will be asked whether or not they wish to reinvest their funds in the mortgage.
While investments are for the term of the mortgage it is usually possible to have funds released early, subject to payment of an administration fee and the availability of other investors to replace the investment.
Costs
The borrower pays for arranging the finance, preparing the documents and registering the mortgage against the title. Commission is paid on interest collected. Our current interest rate is 8.85%. Our commission is deducted from this rate, leaving an investment rate to our lenders of 7.85%. During the term of the mortgage our Nominee Company has the right to review the rate of interest to allow for market rate fluctuations either up or down.
Risk
Layburn Hodgins does not guarantee funds invested in the Nominee Company and such investments are not covered by the Solicitors Professional Indemnity Fund. However, the operation of the Nominee Company is audited by the New Zealand Law Society and subject to the Solicitors Nominee Company Rules providing an excellent safeguard for investors. Accordingly, while we cannot give guarantees, we are extremely careful with the investment of client’s funds.
Further information
If you are interested in investing or lending, please contact Lisa Donnelly 03-3662-332 or by email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
