Crunch Time - Options For Lenders

With the much anticipated economic downturn now a reality, we look at the options available to lenders in today's tough property market.

In his article, Richard Stanley of DTZ outlines the challenges plaguing the commercial property market and finds little hope for improvement in the short to medium term. A point worth emphasising is that lenders face substantial write-offs and it is unlikely that a strategy of an immediate sale at the best price will be attractive in many circumstances.

Common problems Some of the widespread issues in the current property market include:

• incomplete residential developments with projected sale values significantly lower than original expectations