Bridging Loans

How to Complete Bridging Finance Quickly

Part of the appeal of bridging loans is that they are supposed to complete quickly. Lenders benefit from the turnaround of funds, and Borrowers usually want to use the funds as soon as possible to complete a purchase in time, or to refinance an existing mortgage before any penalties are incurred, or just to release capital as soon as possible.

However, we are regularly approached by borrowers (or their concerned brokers) who need help when their bridging loan has either slowed down or met legal complications, usually because their conveyancer is in over their head.

Naturally, we are always happy to help in these circumstances but bridging loans should never get to this stage. None of the parties benefit, it reflects badly on the profession, and borrowers often begin to consider other less suitable options out of sheer desperation and frustration.

The easiest way to avoid this kind of scenario is ensure the borrower instructs a specialist bridging solicitor with the capacity to act quickly.

Five Ways a Specialist Bridging Solicitor Can Help

Specialist bridging solicitors may be a little more expensive than a typical conveyancer, but

1. They are used to the speed and intensity of work required to complete as soon as possible.

2. They understand the importance of working with borrowers and brokers to progress matters as swiftly as possible.

3. They will be familiar with many of the lenders and their particular requirements.

4. They will be able to anticipate any potential difficulties early on in the process and address them head on, and finally

5. They are likely to have local contacts who can help with Independent Legal Advice and other third party involvement

Verifying Clients’ ID and source of funds

Additionally, we have heard feedback from some brokers that bridging loans are occasionally being held up by the borrowers’ solicitor taking too long to verify the borrower’s ID and/or their source of funds which they are contributing.

Whilst it can sometimes be a tricky balance to meet the professional regulations we are bound by (most notably the Anti-Money Laundering Regulations and Proceeds of Crime Act) whilst simultaneously satisfy the lender’s specific AML criteria and not overburdening the borrower with unreasonable demands, solicitors should be on the front foot with this.

Ideally, solicitors should ask to meet their borrower clients in person to examine and certify the original ID documents and witness the security documents. If meeting the client in person is not possible for whatever reason, solicitors should liaise with the lender early on in the process to clarify their requirements to represent the borrower remotely including video conferencing, an online ID verification App, and an independent witness in the room with the client to countersign the legal documents.

We Can Help

If you are thinking about bridging finance or wish to talk to our specialist Bridging Team to quickly and effectively complete your matter, call us today on 01273 525766 or email us at harry.tuke@batealbonsolicitors.co.uk and we would be pleased to discuss your loan with you.