Lending in the commercial property market is unfulfilled due to restrictive offerings, a bridging lender has claimed.
Brian Rubins, managing director of Alternative Bridging Corporation, stated that some bridging lenders were reluctant to make loans in excess of six to 12 months or do not have the suitable funding structure to do so.
Brian warned that there were a limited number of brokers who truly understood the dynamics of commercial property finance.
“Traditional markets are not relaxing their criteria and our experience is that underwriters are being more demanding and seek to have all the i’s dotted and t’s crossed before parting with the cash,” Brian explained.
“…While they may provide a quick fix, they do not satisfy the borrowers need to have sufficient time to improve the property before seeking long-term refinance.
“Surrendering to a shorter period than needed is short-sighted and likely to incur the borrower an extra cost by needing to refinance the first bridge before being able to negotiate a long-term loan.”