Commercial
lending was long the domain of high street banks and particularly so when all
that was needed was a site meeting coupled perhaps with a good lunch with the
bank manager and often the funds were quickly available! Life has changed and the high street lenders
are now more dramatically conservative in their lending with the decisions
often being made at credit and risk committee level. This has opened up
the market in many differing ways with a myriad of new lenders coming to market
during the last few years covering almost every possibility from lock up
shops to multi-million pound office blocks and hotel complexes.
There
are lenders who will offer - short term lending for the swift purchase of an
auction property; funds to support multi development or self-build including
commercial units; funds to assist the re-mortgage of large property
portfolios; funds to help buy existing businesses or extend current business
portfolios or Houses of Multiple Occupation; funds to convert or extend
offices or factories. The list goes on! In fact it is almost endless. If there is a
defined, affordable commercial need, then there is likely to be a lender out
there somewhere looking to write the business!
Of
course, rates and terms will vary depending upon the type of commercial
mortgage written. Lenders have varying degrees of risk assessment
calculations and this will determine the loan to value and charging
rate levels.
So,
where have all these lenders appeared from? It is no surprise to learn that they have been
there for a number of years simply awaiting the return of commercial mortgage
demand. Some are subsidiaries of high street banks who have criteria which
suits certain market segments. Others
may be as a result of private funders who are looking to secure a decent return
for their investment as against the poor market figures at the moment.
As
always, please ensure that you get professional independent advice before
entering into any agreement.
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