Mixed commercial-residential diversification increasingly popular for landlords – Aldermore

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  • 30/05/2019
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Mixed commercial-residential diversification increasingly popular for landlords – Aldermore
Residential landlords are increasingly looking to diversify their investment portfolios, with commercial property which has the potential for residential conversions above becoming more popular.

 

According to Aldermore commercial director John Carter, the lender was seeing a large volume of interest in such measures.

He also noted that redemptions being seen were typically through sales where borrowers were realising the value of their investments.

Speaking on Specialist Lending Solutions Television in association with Aldermore, Carter said:

“There are quite a lot of retail on the high streets where uppers may just be used as storage.

“That then becomes an opportunity to get planning for residential and create what is a mixed commercial-residential loan. That helps diversify the income – we see a lot of that.

“And in terms of redemptions on our book, we don’t see much in terms of refinance, it tends to be sales.

“That says we’ve got borrowers who have successfully done that but then had offers to sell what they’ve created in terms of the investment to someone else.”

Carter added that newer investors should be aware that commercial real estate was not a short-term investment and they must go in with their eyes open and be clear about what they are trying to do.

 

 

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