FAF International gears up German activity
14 April 2010
FAF International has joined forces with the recently retired MD & Head of London branch of Westdeutsche Immobilienbank - Klaus Schreiner.
After a distinguished banking career spanning nearly 40 years, where he has worked with banks across Europe, as well as being the past President of the Association of Property Bankers, a member of the Investment Property Forum and Liveryman of the Worshipful Company of International Bankers, Klaus commented "My background with the German banking sector coupled with the extensive experience in the property finance area makes a convincing partnership with FAF International to promote its insurance products in the German market. We have seen interest that convinces us that a concentrated campaign should bring results. A series of seminars are planned for later this year in Germany. A similar approach is underway in the UK."
In the last 16 years Klaus has focussed on commercial property lending in the UK and across Europe and has an extensive network of bank and client contacts particularly in the UK and Germany, this will no doubt assist FAF International with our German specific products such as Voidable Lease and Portfolio Insurance.
German Voidable Lease
As many as 75% of Germany's commercial leases breach the Written Form Requirements of the German Civil Code. As a consequence of such a breach a tenant could prematurely terminate the lease giving 6 months' notice. Lenders financing an acquisition or refinance will be concerned that a loss of rental income, as a result of a written form defect, could result in a shortfall in the mortgage repayments. Our Voidable Lease Cover avoids the problem of the owner having to approach the tenant to try and "cure" the defect or having to give warranties or other collateral as part of the loan arrangement. It is also far more cost-effective than a bank guarantee, which has to be repaid if the guarantee is called in. Once our cover is in place, it protects the lender against any shortfall in the mortgage repayments resulting directly from a premature termination of the lease, due to a breach of the Written Form Requirements.
Portfolio Insurance
FAF International's portfolio insurance insures real estate portfolios against ownership risks and mortgage defects. The insurance is used to supplement legal due diligence and de-risk the process so that the purchase or refinancing of portfolios can be completed more efficiently, at lower cost and with the safety net of an insurance policy standing behind due diligence.