LendInvest, a leading digital financing platform for the UK market, has commented on updates related to delivering complex bridging and development deals in 2022 (and the landscape in general).
Tom Madden, Director of LendInvest‘s Structured Property Finance team, has taken a look back on 2021 and the year ahead for “complex lending.”
While commenting on the market challenges that Madden and his team faced, he noted:
“The uncertainty in the market. For development acquisition sites, this has been driven by the increasing costs and supply of both materials and labor throughout the year due to Covid and Brexit to say the least.”
Tom added:
“For commercial property, what do the short term and long term markets look like with the various states of pandemic lockdown and the changing needs of our employers and workforces. In turn this may have led to some opportunities in the market but the level of mid market transactions has been a little light compared to previous years.”
Going on to share the successes during the past 12 months, Tom revealed:
“During the year we helped dozens of specialist brokers place their larger complex deals and lent to over 50 clients on loans from less than £1m right up to £23m. We’ve lent on substantial planning play sites, large investment portfolios, completed and part completed developments and to complex borrowing structures just to name a few examples.”
Tom also shared that strengthening their relationships with their key brokers and clients was a major accomplishment for the team. He revealed that they have clients that they’ve lent to “on more than half a dozen occasions already in just 18 months as a new team and it’s the feedback from these types of relationships that helps [them] to continually improve what we’re doing.”
Responding to a question about what he expects the market to look like in 2022, he added:
“Based on how busy the market has finished 2021 it does feel like 2022 will be a positive step in the right direction. The amount of capital in the UK specialist real estate market continues to increase and I can’t see 2022 bucking this trend. This has led to enormous competition between lenders of all shapes and sizes and for all types of finance requirements.”
Tom also noted:
“For large bridging loans, which our team specialize in, there are still only a few lenders in the market who can be trusted to always deliver on their word and I’m glad to say that LendInvest is certainly one of those.”
While discussing potential challenges, Tom said:
“As has been the case for at least the last few years it’s the continued uncertainty across the whole economic outlook. Property Developers and Investors in the UK are always looking to push forward with positive medium/long-term views whatever the short-term concerns but these do seem to be coming from all angles at the moment.”
Commenting on the one thing he hopes to achieve, Tom stated:
“We have steadily grown our Structured Property Finance team lending over the last 18 months and hope to grow this more rapidly during the next 12 months and to expand the product offering and team.”
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