CB Richard Ellis says that lending for prime properties in Europe is finally beginning to thaw, with banks willing to lend more, and on higher LTVs. Rising property values are putting the wind into sails.
The data showed banks in the UK would lend up to 75 million pounds on a single prime asset, with a maximum LTV of 70 percent and a margin of 185 bps above Libor. French banks would lend up to €75m with a maximum LTV of 60 percent, at a margin of 180 bps over Euribor, the data showed.
Banks in Germany, Italy, the Netherlands and Spain were prepared to lend between 40 million and €50m, with maximum LTVs of 60 to 70 percent. Germany and the Netherlands had the lowest margins, at 140 bps and 150 bps, respectively, above Euribor, followed by Italy and Spain at 200 bps and 250 bps.