Exit in an orderly fashion please

“Fail to prepare, prepare to fail”

In the current climate of Brexit there is also a parallel being run with regards to borrowers struggling to exit their facilities in a timely fashion and this has penalties that will be unpalatable after all that hard work and time, sounds familiar?

The fixed term loans are great for borrowers needing clarification and time to deliver a set project and these are often offered at higher LTV’s so make this finance accessible to all sections of the market.

The problem with a fixed term is it exactly that, when the time is up, it is up. How are you getting out? Sale? Buy to Let? All of these have positives and negatives however all offer a way out of the facility. 

The one thing these needs is time. Time for a valuation, time for building control sign off, time for the legal process, etc. None of these are 5-minute jobs and the history must be understood early.

We would recommend that the exit is considered almost from the outset and do not be afraid to run with plan B.

For advice, please get in touch.