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Surveyors break lockdown - Property lending is GO

Surveyors have been given the green light to work in people's homes and commercial properties.

Paul Surtees May 13, 2020

The department for business, energy and industrial strategy specifically lists surveyors alongside other property-related workers such as plumbers, electricians and meter readers so long as social distancing is possible. 

Zoopla estimates that £80 billion of transactions have stalled during the lockdown. There has of course been a similar freeze for commercial property lending. With surveyors come valuations, with valuations indicative offers can go into full underwriting, as such property lending can resume. 

Commercial property lending is huge in the UK with nearly £200b of borrowing outstanding.

For businesses with unencumbered property assets or low LTVs, this will enable businesses to borrow at the lowest possible rates in the market. 45% of Commercial property in the UK is owned outright, so there is plenty of scope to leverage these assets where available for low rates in support of their businesses. 

Where the business has invoices, property can be used part as a broader asset-based lend to provide day to day cash flow through invoice finance, but with a free float over the top utilising the property.

In every crisis, where SME lending is affected, there is always a sequence to which lending resumes. Access to surveyors means property is the first product to really emerge from the crisis as a solution beyond CBILS and other government initiatives. 

 

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