10 ways to make the Bridging Finance process easier
Bridging is all about speed and efficiency – especially during the underwriting and due-diligence process, so we thought it might be useful to share 10 Top Tips on how the process can be made easier:
1. Full disclosure
I know it’s obvious, but if we have all aspects of the case – including the really bad bits – up-front, it makes this so much easier. Similarly, if adverse information comes up during the process…just tell us. We will always try to take a view if we can, and the earlier we hear the better we can manage it.
2. Confirm the structure of the borrowing entity
A simple organigram is really helpful because this drives our requirements re KYC and financial information.
3. Find-out who has a holiday planned
This is particularly relevant during the summer period. It often happens that at a crucial moment in the process we find out that a document can’t be signed because a key signatory is heading to somewhere exotic for some well-deserved R&R. There is always a solution but it’s so much easier if we know in advance.
4. Closely follow the Solicitors instructions around execution of facility documents
Nobody wants to sign on the dotted line only to discover that it’s been executed incorrectly, and they have to re-sign it again later. Our solicitors provide clear instructions as to how documentation should be executed and it’s important for clients to follow this advice.
5. Ensure KYC documentation is up to date and has been certified
Again, really easy stuff to sort…but why leave it until the last minute?
6. Not forgetting an Asbestos Survey for older properties
With asbestos being a specialist area, it is not always easy to get a professional to inspect and produce a report quickly. If the client is unsure whether they need one, it’s always advisable to speak with the valuer at inspection to ascertain whether one is required so they can instruct a survey early on.
7. Arranging insurance as per the lender’s requirements
We see that too often the insurance is left to the last minute and the policy is sent out with incorrect noting of the lender’s interest. This can also include inaccuracies such as the use for which the property is insured or a different reinstatement value to that requested by the lender. A back and forth then follows taking valuable and unnecessary time to resolve.
8. Remembering to provide an EPC
This usually arises where the transaction is not an acquisition (an EPC is required when selling a property).
9. Getting a Fire Risk Assessment
Like asbestos, this is the tenant’s responsibility and, whilst important not least for the tenant’s safety, insurers will generally require that one is in place and being adhered to.
10. Obtaining gas and electrical certificates for residential properties
This is a legal requirement for occupied properties and again, is usually required to satisfy the insurer’s requirements.
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