Over the last few months, there has been a significant increase in the number of new instructions received whereby we are being asked to act for clients who are raising funds by refinancing and securing loans against existing properties that they own.
This increased demand to raise monies may be caused by any number of reasons, such as being affected by the impact of the coronavirus crisis, financing a new project or the switching of banking facilities from one lender to another.
Each situation is unique to the parties involved and as part of this process, it is important to take the time to understand the client’s commercial needs from the outset to ensure that it runs as smoothly as possible and the desired result is achieved.
What Work is Involved When Refinancing a Property?
By way of example, typically the work involved when we act on the refinancing of a property for a lender would include:
- Reviewing and reporting on the title of the property, including any occupational lettings;
- Raising enquiries of the borrower;
- Reviewing and reporting on the usual property searches;
- Ensuring that all security documentation has been correctly executed;
- Registering the legal charge and any debentures at Companies House and the Land Registry; and
- Dealing with any post completion formalities, including the discharge of any existing indebtedness.
Whilst the due diligence process for securing monies against an existing property is akin to a purchase of that property, the whole process should theoretically be more straightforward and we would not necessarily expect any added complications.
If you are considering raising funds to be secured against any existing properties you own and would like any further guidance on the refinancing procedure and documentation involved, please contact Germaine Peters on 0161 475 7602 or email [email protected] to talk through your options.