Most clients are realistic and do understand that we are not in a normal market as most of them would have approached their high street Bank to receive the good news that they are not open for business.
The demand is certainly there and when the brakes do come off we are going to be flooded with clients who want to get on the lending bus as soon as possible. In London the commercial market is still fairly active but London being the capital attracts clients from all over the globe who still see the capital as the place to be and with the current depressed market there are some very attractive bargains both in the commercial and residential markets.
If we give the wrong signals out to the client they start to get enthusiastic, when they should not, and then they have to come back down to earth with a bang having spent money that they could well have saved. It is our current position that we should make the client fully aware of the current state of the market and what the market will consider as a possible deal.
If we concentrate on the deals that stand a reasonable chance of going through Where London scores every time is that many of the buyers come from abroad and are cash rich and are in a position to purchase without the need to raise a mortgage..
The Banks are still trying to tell us, and failing very badly that they are there to lend, but current experience tells us that nothing could be further from the truth.
Anything that is very very low loan to value with excellent income or trading accounts might just get into the starting blocks, but anything that is seen as risk you can forget it.
It’s not what we want to hear but why beat yourself up trying to get a case through when you know from day one it will not fit in the current market.
Rather than having a go at every deal that comes across our desk we should be selective and give more time to the clients with whom we know that we stand a very good chance of success and give more of our time to where it can be best spent and be more effective.
Unfortunately this is not a mission impossible market place where we can get the unusual and fringe cases through. By being selective and cherry picking what we know we stand a reasonable chance of getting past the dreaded credit committee, we can build on our relationship with our lenders and when times are better we can test the temperature of the financial waters and with a fair wind get back to normal from abroad and have the cash to buy and do not need to borrow to assist the purchase.
Although around the City of London you will see many vacant office blocks there still seems to be Cranes across the skyline which tells its own story, London is still very much alive even in this credit crunch.
It will be very interesting to see what happens to property prices when the financial markets open up with funding for COMMERCIAL MORTGAGES BUSINESS LOANS AND COMMERCIAL FINANCE, They should go off like rocket for the first year and then start to level off but in those first twelve months some clients will make a great deal of money
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