2015 News and Media

Property Professionals 'equity rich but options poor'.

says Research from Just Cashflow.

The key to unlocking billions of pounds in UK property professionals' portfolios is being provided by Just Cash Flow PLC at the NACFB Expo conference on 17th June.

Research by the lender has revealed that £70bn* has been added to buy-to-let equity over the last two years as house prices have risen 15% nationally over this period and a staggering 30% in London**.

Just Cashflow Director John Davies says," Our research shows property professionals are equity rich but options poor. This is because prior to the financial crisis many had the foresight to take out tracker mortgages around just 0.5% to 1% above Base Rate.

"Understandably, the last thing they want to do is unlock the equity in their portfolios by remortgaging as this would significantly increase their overall borrowing costs. This can be extremely frustrating as they are unable to use their equity to take on additional properties or improve their housing stock."

These frustrations have led to Just Cashflow introducing the PortfolioBuilder facility - Your flexible bridging solution up to £500,000 for established UK property businesses that own at least one or more commercial properties, which includes buy-to-lets.

The facility operates in one of two ways.

Firstly, as a replica of a normal bridging loan when a much larger amount of funds is required for a new purchase.

Secondly, as an exact replica to a normal bank overdraft which helps flatten out the peaks and troughs of late rental payments and can allow the release of funds to carry out repairs and improvements.

"Our key focus at the NACFB Expo ( Stand C11) is to introduce the PortfolioBuilder facility to Commercial Brokers. We believe it is a great way for them to approach existing and potential property professional customers with the key to unlocking the rapidly growing equity in their portfolios," adds John.

The major difference with Just Cashflow as a business lender and not a property lender is that diligence is based on how the business is being managed and who is managing it. This results in potential access to loans at significantly higher LTVs if security is taken over real assets, although this is only part of the lender's consideration when underwriting a case.

*Of the 4.2m privately rented properties in the UK (census2011) approximately 2/3 are owned by landlords making use of mortgage lending (NLA), - approx. 2.814m properties. Assuming a conservative 25% equity in the property (average B2L deposit) two years ago, based on average property values, equates to £41,978. Add to this the additional equity from house price rises (£25,136) = £67,114 equity. This totals a minimum of £188bn total equity, with the additional equity being £70bn.

**According to latest available data from Nationwide House Price Index. National house price rises = £167,912 (May 2013) to £193,048 (April 2015). London rises = £306,919 (end Q1 2013) to £408,780 (end Q1 2015).

Date Issued 11 June 2015.

Download a PDF version of this Release

PortfolioBuilder Image

Your flexible bridging solution up to £500,000 for established UK property businesses that own at least one or more commercial properties, which includes buy-to-lets.

Learn More about PortfolioBuilder

Follow @justcashflowuk on Twitter for more like this.

News and Media

Just scroll through the timeline for all our news and video.

2019

2018

2017

2016

2015

2014

  • Interview by Business Connections

    The Business Show 2014 Olympia

    Watch Now
  • Britain Means Business Interview

    John Davies talks about business funding

    Interviewed by Britain Means Business.

    Watch Now
  • Just Cashflow launches BDM recruitment drive

    As industry debates circulate about the value of the human touch versus technology, commercial lender Just Cashflow has proved its positioning on business relationships by prepping to recruit 8 more Business Development Managers.

    Read More
  • FeeRoller

    FeeRoller Launched

    For Professional Firms to cover late payment of fees to them OR for their clients so that they can pay their fees on time.

    Read More
  • With great funds comes great responsibility

    Alternative lenders such as Just Cash Flow are in a privileged and responsible position as we get to see the plans of businesses keen to invest and grow. Many are well thought out, based on...

    Read More
  • Education is key

    "Too many small businesses don't survive"

    Read More
  • MDDegree

    #MDdegree

    Just Cashflow's twitter interview with Bizitalk discussed whether a national qualification for company Directors should exist?

    Read More
  • So you want the cash?

    Then get credit worthy.

    Read More
  • A lack of knowledge can set alarm bells ringing

    Just Cash Flow PLC launched in the UK in early 2014. Marketing Director John Davies reflects on experience to date

    Read More
  • WageRoller Launched

    Just Cash Flow PLC has added a new product to its expanding portfolio of facilities designed to help UK businesses fund their growth.

    Read More
  • Just Cashflow smashes £3m milestone

    After passing £1 million in lending this June, Just Cashflow has now accelerated through the £3 million milestone in what is usually a quiet month for the industry.

    Read More
  • Financial Professional Show sponsor

    Just Cashflow has been revealed as the latest sponsor of the highly anticipated 2014 Finance Professional Show

    Read More
  • Just Cashflow hits £1m in deals

    Just Cash Flow PLC has announced it is celebrating its first million pound milestone, after only soft-launching in March.

    Read More
Insights Logotype

Insights is Just Cashflow's online resource and information centre for ambitious growing businesses.

It offers inspirational profiles, expert knowledge and more, backed up by a range of briefings, checklists and other information that we hope will help you to develop your business.

Read now