Commercial property deals lacking cover - commercial mortgages

06 November 2007

Commercial property transactions are suffering from insufficient liability cover, Richards Gray has suggested.

The Home information pack provider has said that it estimates as many as ten per cent of such deals do not have enough cover, meaning that firms with commercial mortgages and others making such deals could lose out significantly.

Many cut corners and only have liability cover up to £5,000, the firm added, according to MortgageIntroducer.com.

"We estimate that ten per cent of transactions do not have sufficient cover – and this is leaving the purchaser open to what could be a major financial loss, said Richards Gray managing director Mike Richards, the website has reported.

"Quite simply, it is not a risk worth taking," Mr Richards added.

UK locations such as Birmingham and Derby recently placed in a list of the top European cities for investors and occupiers, with London topping the rankings for the second consecutive year.