Commercial mortgage holders 'should offer monthly rates'

24 December 2010

Written by Steve Olejnik

Commercial mortgage holders have been called upon to offer monthly rates to retail businesses rather than quarterly charges.

The British Retail Consortium condemned the "archaic practise" or asking for money four times a year as "a throwback to a bygone era" saying it had been campaigning for a change to this system for a long time.

According to the second annual Monthly Rents Survey conducted by the organisation, some property owners switched to monthly rental terms between 2008 and 2009 but that this process has now stalled.

Stephen Robertson, director-general of the body, said quarterly payments have "no place in the age of the internet".

"The best landlords recognise that it's in their own interests to have their properties occupied by thriving businesses and are showing a willingness to work with tenants," he added.

Commercial mortgage holders with real estate in London's Walbrook Square may be able to charge higher rents, as president of Bloomberg Daniel Doctoroff, which recently acquired a site in the area, described it as a prime location.

Find out more on our commercial mortgages and how we can help you achieve your aims - enquire online.