Real Estate Finance – Mortgage

A complex market which requires high flexibility from real estate financing players

In Europe, the shortage of assets to purchase as a consequence of an uncertain future and falling prices has led to a collapse of the old real estate financing activity. This phenomenon is reinforced by a drop in the new construction financing sector’s activity due to the investor’s reluctance to take risks.

Institutions specialised in real estate financing must find appropriate solutions to deal with this situation, such as:

  • Having offers which allow them to cover their risk by using risk management tools or by limiting their risk during phases of construction and negotiation
  • Offering financing options whose solutions will be adapted to the customers’ requirement to limit their debt
  • Anticipating problems and managing contracts by allowing the modification of existing contracts in order to limit default situations.

Linedata’s offer at the heart of the business strategy

Linedata supports real estate financing players with the Linedata Ekip 360 software package, and its Distribution and Management systems.

Thanks to the exceptional coverage of our systems, you can offer your customers real estate financing solutions adapted to their needs, including real estate leasing and mortgages.

 

Front-Middle Office

Our embedded software package allows the user to manage each step of a real estate financing project and implement features responding to the complexity of the financial quotation to be created:

  • Acquisition of an existing building and the land on which it was built by means of real estate leasing:
    • Financing of the land, building and notary fees
    • Financing based on a fixed or a floating rate
    • Mortgage security.
  • Acquisition of an office building with real estate leasing facilities:
    • Management of the construction phase: follow-up of the different markets’ budgets, problem-solving with or without holdbacks
    • Pre-financing with capitalisation of interest
    • Enforcement at the end of the construction work with integration of the capitalised pre-financing interest.
  • Acquisition of land and construction of a shopping centre by means of a real estate leasing contract with a subsidy from the General Council:
    • Financing syndicate with different interest methods per partner
    • During the construction phase, pre-financing interest is invoiced
    • The enforcement is made at the end of the construction works with successive readjustments right through to the end of the construction works.
Back Office

Besides conventional parties management, invoicing and cash flow operations, the completeness of our solution provides you with more flexibility in day-to-day contract management:

  • Provision of a wide range of amendments (effective deferment of monthly repayment at the end of the contract, renegotiation with reintroduction of unpaid invoices, rescheduling…). These modifications are backed up onto an embedded workflow and can be retroactive, anticipated and cancelled
  • Asset split for partial sale or damage claim, sale or re-leasing of off-lease assets, etc.
  • Follow-up of depreciation per asset in order to take into account the regulatory changes required by IAS
  • Embedded auxiliary accounting including a complete ascending and descending accounting audit trail.