Surveyors and Property Consultants

Finance Brokerage

Investment Property Funding


In more favourable market conditions funding was widely available from a plethora of lenders and the funding requirement was often only considered after a decision had been made to invest.  Times have changed and in the current environment the funding question needs to be considered at the very same time as the decision to invest.


It is a factor of the current market place that there are fewer active lenders on investment property than in previous times and those lenders that are active have tightened their criteria.  It is also the case that although certain lenders purport to be “open for business”; the appetite, terms and conditions are not always as they first appear.


Investment property lenders' primary interests are the quality of the tenants, the terms of the leases and the ability to re-let the property should it become vacant. Inter-related factors are of course value, asset quality and location and the background and experience of the borrower.


Lenders are quite naturally keen to lend into the prime market, categorised by strong tenant quality, long residual lease terms and good locations.  Where lenders are prepared to consider the secondary market they will look for diversity of risk and ability to sustain income and the lending terms will usually reflect higher pricing, coupled with lower gearing, steeper amortisation and a higher equity contribution from the borrower. In simple terms the better the quality of the asset in all respects, the more competitive the funding and the more flexibility within the structure.


Keppie Massie has close relationships with a wide variety of traditional and secondary lenders who have maintained an appetite for investment property lending.  It is our job to keep our market knowledge up to date in terms of these lenders’ preferred sectors, lending criteria and terms of business so that we can best match our client’s requirements to a particular lender, and do it quickly, and in so doing allow our clients to focus on the property specific aspects of the transaction.


We work closely with our Valuation Team and also our Investment Team in considering achievable funding structures at the same point in time as the acquisition to assist the investment decision making process.

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