Peer-to-Patent Australia

LATEST PRIOR ART

Date	Title	Reviewer

02/09/10	Lenders offer cut rates now for a future piece of your pie	Diane Willis

02/09/10	Shared Appreciation Mortgages Re-Debut	Diane Willis

01/06/10	Housing Partnerships: A New System of Housing Finance	Susan Murray

DISCUSSION

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Ben McEniery (29 days ago)

We have had a number of prior art references submitted that cover the SAM concept in general, but none that seem to cover the aspect of this application that involves the second loan, which " is an interest only loan where the interest rate is related to the rate of rental return from real estate properties of the value of the second loan". Is anyone out there aware of a SAM that links an interest rate to rates of rental return?

Ben McEniery (2 months ago)

Here are a few points to get the ball rolling in terms of discussion in relation to this application. The 'shared appreciation progressive mortgage' claimed by Residex Pty Ltd ('Residex') is an arrangement where a purchaser of real estate enters into an agreement with a lender to share the equity in a real estate property. This is an interesting application because it goes beyond the industrial and mechanical technologies that have traditionally been regarded as patentable subject matter. The application is quite complex, but here is an attempt to distil some of the salient features. It involves: - a purchaser of real estate taking a loan from a lender to finance the purchase, the loan comprising two loans; - one being a conventional principal and interest loan; and - the other being an interest only loan that is periodically reviewed, where the interest rate is related to the market rental rate for properties in the suburb; - the purchaser taking legal title to the land and granting a mortgage in favour of the lender; - the purchaser and lender entering a contact to allow the lender to purchase an interest in the property proportional to the value of the amount outstanding on one of the two loans, immediately before the property is sold, so that the purchaser and lender jointly own the property at the time of sale; - a percentage interest in the property being acquired by the purchaser, to be calculated by reference to a Property Price Index quoted by Residex; - a monthly interest rate payable calculated by reference to a Property Price Index quoted by Residex that values real estate according to the suburb in which it is located and a market rental rate for properties in the suburb. This application is cast in a way that suggests that it is limited to the field of residential housing mortgages. There may be relevant prior art in the residential lending field. I also wonder whether there might be similar shared equity lending arrangements out there that have been employed in other financial arrangements that could serve as relevant prior art. While strictly not relevant to the peer-to-patent search for prior art, it is interesting to note that the claimed invention does not seem to cause a physical effect or transformation as required by the Federal Court of Australia in Grant v Commissioner of Patents [2006] FCAFC 120.

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