What happens when an owners corporation (also known as a body corporate) finds that it does not have the necessary funds available to complete building works or pay for professional services and insurance?

Lannock’s strata funding enables owners corporations to complete projects now without needing to access the capital works fund/sinking fund/maintenance fund  or raise a special levy.

How it works

Lannock provides funds directly to the strata corporation – we do not lend to the individual owners.

Our funding is completely unsecured – there is no security such as mortgages, banker’s liens, charges or caveats.

We fund the owners corporation directly and do not investigate the financial position of individual owners of units. We do not require owners or committee members to give personal guarantees.

As a ‘primarily residential’ strata corporation is deemed to be a consumer under the terms of the National Consumer Credit Code, our documentation and processes are fully compliant with the Code.

Type of facility

Lannock provides funds similar to a line of credit. The amount of approved credit is typically available for a year, during which you can draw as many advances as you require. This structure has proved to be very useful for owners corporations undertaking complex building projects and having to pay multiple suppliers in varying amounts. You only borrow as much as you need, when you need it and so you save on unnecessary interest costs.

Amount of credit

Subject to the aggregate market value of the lots in your in strata corporation, there is no specified minimum or maximum amount we will fund. Lannock will consider variations to this standard criterion in special cases such as where the building is being redeveloped or where additional value is being created.

Costs and charges

We are proud to say that you then only pay for what you use, when you use it. We have an initial $600 approval fee.

We do charge fees and recovery costs if there are dishonours, defaults, arrears, or other unusual events (the Facility Agreement has a complete list of all fees charged in these situations).

Interest rate

Lannock’s rates are based on an indicator rate called the Strata Reference Rate. This is an indicator rate that may change according to market and economic conditions.
The interest rate also varies based on the amount and term of an Advance.
The interest rate that applies to each Advance is the rate on the date of the Advance for the amount and term of the Advance.


Lannock provides a multi drawdown facility. You may draw an Advance at any time during the Availability Period. We require you to provide invoices supporting the amount of each Advance. We will pay the funds directly into the corporation’s account to enable it to pay the contractor or to be reimbursed for a payment already made.

Steps to apply for Strata Finance

Applying for strata finance is quick and simple. Let us know:

  1. Your strata plan number and building address
  2. The number of lots in your building
  3. How much you wish to borrow
  4. What the purpose of the funding is for

And we’ll provide you with a Lannock Strata Finance funding proposal which outlines all the information needed to take to your next annual general meeting (AGM) or executive general meeting (EGM).