Aldermore: Lenders need to ‘buy in’ to a borrower’s strategy

The lender noted that as the property market changed it needed to buy in to a borrower as there was less security in lease tenures.

Speaking on Specialist Lending Solutions Television in association with Aldermore, Sirius Property Finance co-founder Robert Collins asked what commercial lenders were doing to adapt to more flexible shorter-term leases in the dynamic economy?

Aldermore Bank commercial director John Carter replied that this was where it needed to look at the individual closely.

“Who is the borrower, what’s their strategy?” he said.

“We clearly need to buy in to that and that at the sense of what they are trying to do is right.”

He added that the days of 15- or 20-year leases were largely gone but that with the majority of its book having quite short unexpired lease terms on average, this was something it was used to.

“Some retail in the right location is OK because it’s got good footfall,” Carter continued.

“It’s down to who the users are, who the tenants are.”

And in a word of advice for brokers he added: “When speaking to your clients, let’s be clear about what the issues are and call them out early.”