Lending conditions in the UK commercial property lending conditions are fantastic and have never been this good. King Sturge/Property Week Index clearly shows that the banks can lend almost 1.7 times as compared to the property value, which indicates that the loan-to-value ratio for the borrowers and lenders is sustainable.
The index has registered an all time high from September 08 to December 08 last quarter. The figures increased from 93% to 173% almost three times of what was seen in June 2007 (59%).
Dominic Reilly the partner and compiler of the index at King Sturge stated that debt finances continue to remain scarce but investment purchasers who have complete access to finance understand that the returns on the equity are moving towards the positive side slowly and steadily. He further stated that the lenders condition has also taken an upturn.
Dominic Reilly clearly stated in a presentation to his clients this morning that the conditions of the property lenders were indeed fantastic. However, the UK property is too facing hard times due to the economic slow down. Last June De Montfort University put an amount of £207.9bn money that was lent to UK commercial property.
De Montfort stated that a little less than £23bn will be refinanced this year and £21.5bn for the coming two years.
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