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Risky lending on property

Language: English Series: Estates Gazette ; (9902) 22 May 1999, 65(1)Publication details: 1999Subject(s): Summary: FPD Savills has warned that banks could be getting into risky lending on property by ignoring the implications of low inflation. Loan-to-value ratios of 90% are regularly offered, but with little rental and capital growth over a ten year term, depreciation and obsolescence can erode the value of property by as much as 40%.
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Item type Current library Call number Copy number Status Barcode
News article London News article WB3520-16 (Browse shelf(Opens below)) 1 Available 93550-1001

FPD Savills has warned that banks could be getting into risky lending on property by ignoring the implications of low inflation. Loan-to-value ratios of 90% are regularly offered, but with little rental and capital growth over a ten year term, depreciation and obsolescence can erode the value of property by as much as 40%.