The Germans Are Coming - and Taking Advantage of UK Banks' Finance Struggles; COMM PROP
Only two of the top 12 lenders to property companies are from the United Kingdom according to new research by Savllls - with eight being German.
Savills Interviewed in excess of 100 global lenders, more than 40 of whom claim to have an appetite to lend to UK property, albeit on varying terms.
However, many organisations are lending strictly to existing customers only. In addition, the International property adviser found that the scale of lending has changed dramatically over the past 18 months. Whereas so-called 'big-ticket' lending In 2007 was defined as more than pounds 100milllon, Savllls reduced Its definition In 2008 to more than pounds 50milllon. Today, only 12 lenders will consider deals above pounds 25mllllon.
The report also found that banks are also taking longer to go through their approvals processes. Furthermore, secondary Investment properties and development projects are proving Impossible to finance while those properties that will be considered are under more strict lending terms.
The 12 lenders In the 'big ticket' category are:
D G Hyp
Nationwide Building Society
William Newsom, head of Savllls UK valuation, said: "I know of at least half-a-dozen other lenders who may also be on the list but the level of actual loans committed Is variable. …