MSP Capital expands underwriting team

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with Frettens Solicitors

Some commercial tenants have a right to create another lease below theirs. This is known as subletting or underletting. Essentially, the landlord lets to the tenant, who sublets to the subtenant.

As a tenant, whether you can sublet or not depends on how the lease is drafted. Generally, you can sublet a whole property if you obtain landlord consent first. Subletting of part of the property may be permitted where there are separate spaces within the property. For example, a tenant of 10 self-contained office spaces may be allowed to sublet one of those spaces.

One benefit of subletting is that you can increase your income if your business is struggling or if you can’t afford rent payments. Alternatively, if your business is booming, you may wish to sublet and move to bigger premises.

The biggest risk is if the subtenant does not pay because you may well be relying on the subtenant’s rent to be able to pay the landlord. Without this, there could be big issues for you and your business. If you would like to sublet your property, you will need to: • Check the lease to see whether subletting is permitted • Check whether any conditions need to be met • Obtain consent from the landlord Even if you sublet the property, it will be you who is ultimately responsible for any terms breached by the subtenant or if the property is damaged by the subtenant.

Whether you can or cannot sublet will depend on your lease so I would recommend instructing a solicitor to review it for you. With a little steer in the right direction, you could actually save yourself a lot of time and money by getting the correct advice right from the start.

rramshaw@frettens.co.uk 01202 499255 www.frettens.co.uk

Jo Kelly, Credit Analyst at MSP Capital

MSP Capital expands underwriting team

Property finance specialist MSP Capital has expanded its underwriting team to champion its growth in the development and bridging loan market.

The south coast based lender has made two strategic appointments to reflect its continued growth in the property industry, with £165m of funding released in 2022 so far.

Business development manager Mike Townsend is tasked with delivering new funding opportunities in Hampshire and West Sussex while credit analyst Jo Kelly, pictured, will support the business with asset lending and financial analysis.

Both new recruits are experienced industry insiders. Their arrivals come as the property market continues to do well despite the wider economic context.

Mike spent 35 years with a top five high street bank, and the past 20 as a relationship manager providing funding solutions for real estate clients.

He has structured and supported property deals to enable a variety of residential, commercial and investment projects, many involving bridging finance.

Mike said: “As part of the underwriting and business development team, my role is to spread more awareness of the MSP Capital brand, mainly across Hampshire and West Sussex, and seek out new funding opportunities to help our continued growth aspirations.”

Jo has more than 25 years of industry experience having worked for asset finance providers and, like Mike, a top five high street bank.

She was most recently a senior relationship manager helping Dorset businesses with asset finance requirements, a position she held for seven years.

At MSP Capital, she will apply her skills in asset lending and analysis to assist both head of Broker Relations Arian Manouchehri and Underwriting and Credit manager Lee Merrifield.

Jo said: “MSP Capital is increasingly recognised for its success in combining an entrepreneurial lending approach with robust diligence and checks to identify and progress tailored solutions. I look forward to bringing my experience to bear to help more clients complete deals and make developments happen on the ground.”

Welcoming Jo and Mike, MSP Capital’s managing director Martin Higgins said: “A large part of our ongoing success in the market is due to our ability to build strong relationships with our clients. That is the reason we see our volume of enquiries, applications and completions all going up.

“Strengthening our team with two more industry experts, both with vast experience, will enable us to continue to service our clients on a personal level, while our loan book grows.”

According to Statista, the UK real estate sector generated more than £68.6 billion in turnover in 2021, created or maintained 551,000 jobs, and is set to see 205,000 new houses completed in 2022. The overall value of residential property in the UK is put at £7.2 trillion.

The latest ONS figures also show increasing demand for property with the average house price rising 1.1 per cent in April and now standing at £286,079. That is more than 10 per cent up on a year ago.

At the same time, the most recent UK brokers’ Bridging Trends report tracked an 8.5 per cent rise in the value of bridging loans in the first three months of 2022 compared with the same period last year.

Reasons include heightened demand for investment properties and funding for chain break transactions, a means to avoid the need to sell one home before buying another.