preview

The Canons Of Lending As Detailed Below Essay

Satisfactory Essays

QUESTION 1 The request will be handled using the canons of lending as detailed below: People/character Assessment Thomas Jones has a long standing relationship with the bank. His accounts have been maintained in a satisfactory manner with previous borrowing repaid on time. Thomas Jones set up TJ Property limited to acquire property and successfully converted this into 4 flats of good standard. This attests to his experience in property developments. Additional information The reputation and track record of Thomas Jones should be assessed by reading his credit files to gain insight into how he had honoured previous agreements. His profiles documents should also be reviewed to know more about his financial goals, organisational ability, efficiency, integrity and reliability. His business proposition should be examined to know whether it was well thought out and whether he has the drive and ability to see the proposition through to a successful completion. Purpose/Amount Assessment The purpose of the additional facilities is to convert the new property purchased in Bangor into 4 flats. The additional facilities requested will take Thomas Jones’ total borrowing to £1,100,000. The estimated market value of the property after completion is £1,960,000 Additional information Who valued the property and how reasonable was the valuation? More details about the rational for conversion to rental properties rather than outright sale should be assessed. Is the purpose of the

Get Access