💡 🤝 your lender is often your majority business partner 🤝 💡 Michael Allison reminded a room full of property developers and investors of this at the recent Partners in Property Community event about commercial conversions 👨🏫 He also stressed how borrowing money should be viewed as a RELATIONSHIP and not just a transaction 🤔 Over the past year it feels like this is being tested more and more. Certainly on the enquiries I'm getting we're especially having to work with borrowers to find solutions to loans expiring with Roma Finance or with other bridging and development lenders 🙏 There can be a number of reasons for this: ◼ Time delays in the project - the project may be unfinished, or it is finished but the sale or refinance cannot be done in time for the loan expiry ⏳ ◼ Cost over runs - again, the project may not be finished so it may need a further advance or a new loan & product BUT if the loan to value is too high at that point it may need additional security adding into the deal 💸 🏡 ◼ Sales are falling through - local market conditions at play 😩 ◼ Sales market is slow so the borrower has a change in exit strategy - maybe onto a term loan ◼ Product switch to a cheaper interest rate once wind & watertight or complete 💱 Don't assume that a lender will automatically extend your loan term 😮 Make sure you talk to your lender well before the end of your loan - even if you have a refinance or sale going through they may not complete for 3 months or more ✔ Make sure you understand what the cost implications are or what your options are if your loan expires ✔ Communication is key 💡 We don't want you having unnecessary sleepless nights! 😟 If you find yourself in this situation and want to see how Roma Finance might help then please contact me samantha.williamson@romafinance.co.uk #LoveToLend #relationshipsmatter #developmentfinance #bridgingfinance #lender #solutions #partnership
Posted by williamsonpropertyrentals at 2024-09-27 11:17:33 UTC