A recent Supper Club meeting was held in a private dining room in Manchester’s prestigious Malmaison Hotel. At the meeting, the delegates discussed the state of the Manchester and North West property markets.
The Mortgage Solutions Supper Club is a forum of mortgage experts and developers who meet over meals to discuss the property market.
Many large companies like the BBC have moved into Manchester and this has led to a high demand for commercial property. Other areas of the North West have also seen a property boom.
Much of the commercial property demand is for developments, either new build or extensive renovations of existing property. Many properties are sold before they have been completed. Developers often choose amongst competing buyers the ones who can raise the necessary finance quickly. This has fuelled the need for bridging loans because they can be arranged in a much shorter time than commercial mortgages. Bridging loans are used for fast property purchase completions, and then repaid once more long-term mortgage finance has been obtained.
The demand for commercial property in the centre of Manchester has meant that prices are high, but the Supper Club meeting noted that property outside of the centre and nearby towns can be much cheaper. However, prices are frequently rising. If an offer on property is not made promptly then the price of the property could rise. This is another reason bridging loans are useful so that funds are available as soon as an offer has been accepted.