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RBS offers pre-approved funding levels

Royal Bank of Scotland is speeding up its commercial property transaction procedure in anticipation of a pre A-Day rush.

RBS is offering pre-approved funding levels for commercial property investments into self-administered schemes, in conjunction with James Hay, Westerbys and Merchant Investors.

The bank will marry IFAs with lenders, with RBS assessing loan feasibility. Through its local links with IFAs, pension funds and valuers, the bank says it can offer a more centralised process for approving funding.

Sipp and SSAS transactions, which start before A-Day but see the loan funds drawn after it, are expected to be treated under the new borrowing maximum. The rules currently allow 75 per cent LTV for commercial units but this will change to 50 per cent of the pension fund after April 6, 2006.

RBS warns that each investment should be considered under its own merits and not rushed through for tax reasons.

RBS/NatWest associate dir-ector, Northamptonshire commercial banking Andrew Ellis says: “We are looking to demystify pre-A-Day lending.

“We have matched comm-ercial developers with developments completing prior to April next year. By working with valuers giving us out- line valuations and rental incomes – a quote for lending levels expected can then be supplied to all prospective buyers.”

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