Holiday & Short Term Complexes

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Holiday & Short Term Complexes

by Paul Gaffney

There have been very few transactions in the holiday and short term complexes because of the uncertainty created by Covid19.

We have prepared a number of sales figures for these complexes using a normalisation process for the months affected by Covid19 and lockdowns.

The valuers have advised that they would accept the normalisation process when preparing valuations.

Banks have indicated that they would be very hesitant to lend for purchases unless the complex could prove above-average trading and the purchasers had very good security and the loan ratios were approximately 60% to 65%.

Up to this stage, banks have been very helpful and understanding with our clients, but I have just noticed that some of them are approaching clients and looking for Principal and interest payments.

We would expect banks to be looking at the business values and the related loan ratios sometime in 2022, so we need to be prepared for negotiations.

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All information provided here is general in nature only, in preparing it we did not take account of your individual and financial situation or particular needs.