Published: 10:06 AM, Apr 13, 2022
After a rough couple of years the demand for London bridging loans is growing as people look to redevelop. We know that the capital took a battering over the last couple of years as people raced for space in the country. Why stay in the capital when employers were forced to send everyone home to work in the back bedroom on a laptop.
But now after a couple of years things are turning around and business has reverted to type. It does not want it's highly paid staff barely changing their underwear for days on end while pretending to be giving 100%.
Bosses are bosses, the desire to hover over desks to check were not binge watching Netflix is never going to disappear.
But the turnover in office space has been tremendous and much of what is there is going to have to be changed, modified and adapted.
When properties come up for sale it is going to be easier to arrange an unregulated bridging loan. The usual plan is to redevelop in a few months, then seek out a long-term commercial mortgage on the property.
Lenders usually ask for 75% LTV and with some bargains around the opportunity to get a new space completely redeveloped to a client spec is very tempting for businesses at the moment.
Tired of the physical hibernation of the last few years it is a statement of intent to be seen to be driving such projects just now.
I've been seeing a lot of deals of this nature move through the industry recently. Smart developers are working with clients who are looking to bridging to quickly move on a property.
I fully expect to see the London market quickly gain ground lost to the country in the last few years. Country markets will on the other hand perform poorly I suspect. The cost of living will be greater there. Oil which is used in heating more will be much more expensive and travel costs will also rise as more miles must be covered by car.
Expect to see markets still move in strange directions for the next few years.