Commercial Mortgages and Commercial Property on the UP ? 
Wednesday, November 18, 2009, 05:59 PM - Commercial Mortgages
Posted by Administrator
When some one of the statue of British Land makes a statement regarding the current state of the Commercial property market that there are signs the 'worst storm in real estate history' might have passed, after British Land revealed the value of its portfolio increased by 1.4% in the second quarter of the year. The UK's largest landlord and developer said that 70% of its properties had increased in value since June, with a positive shift in investor appetite combined with limited stock benefitting market valuations. It added that transaction volumes had however remained low, while rental income grew 0.7% overall, as a result of a 2.7% rise in retail rents, but a 2.3% decline in offices. While optimistic for the future, Chris Gibson-Smith, British Land chairman, said he was mindful that the waves caused by the financial maelstrom of the last two years had not yet settled.

With that in mind how do we see the market in the short term. With the Banks still holding onto their cash we cannot see any real changes in the immediate future the mind says yes but the body is unwilling to part with the cash.
The demand is certainly there and our own experience in the current market reflects the interest that clients have in purchasing Commercial Property to run their own business or as part of their investment portfolio.

We have to remain positive that we can get the Banks to say yes and of course we do win a great deal of the battles but it would be nice to say yes to a lot more clients who should have the benefit of Commercial Finance to take their business forward or to build up a portfolio. What we are not seeing is the demand for Commercial Mortgages with self certification of income or with bad credit. Is it that these clients have just given up or has the cream risen to the top and what we are now seeing are clients who have done their due diligence and who deserve help because they have a viable business plan.


We are certainly having to work that much harder to help clients and to make the best presentation possible to the lenders to stand any real chance of success with our application. Gone are the days when the back of a FAG packet presentation together with a quick pint and a chease sandwich in the saloon bar would bring success. Our friendly bank manager has long gone to be replaced with a body that just wants to sell you a product in order to meet targets.

As an adviser we need friends in the industry and good contacts are worth there weight in gold dust as we try to extract the best deal that we can for our client with someone who wants our business and trusts us to not to introduce poor quality business, because if we break that bond of trust we will not be welcome at the breakfast table. We need to spend time cultivating good Commercial Mortgage contacts and to network as much as possible, its amazing what you can achieve when have some good friends in the business and it takes time to buils up a good circle of contacts and networking is a great way of making it all happen.

Michael Alexander acommercialmortgage4you.co.uk





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