Commercial Property Finance for Lenders and Borrowers

Legal advice on commercial property loans for lenders and borrowers

Our commercial property lawyers in Sussex and Kent provide expert legal advice on secured finance transactions, advising on all aspects of loan documentation and due diligence for those lending or borrowing money where commercial property is involved.

We work closely with many of the UK’s leading high street banks as well as specialist and niche lenders and we are familiar with the standard requirements of all institutional lenders. Our property lawyers are very experienced and adept at completing secured lending transactions quickly and without compromising on service.

Legal advice for borrowers financing commercial property

Our property solicitors have a detailed understanding of the typical loan documentation used by banks and other high street lenders. This allows our property lawyers to provide efficient, cost-effective advice to borrowers who want to secure commercial property finance quickly and without unnecessary exposure to risk.

General advice for lenders/borrowers of commercial property

All too often the process of entering into a commercial mortgage or re-mortgaging can entail quite a lot of work behind the scenes with the client updated as and when needed. Here at Rix & Kay, we pride ourselves with being transparent and therefore set out the procedure for a standard commercial mortgage transaction so you can see what work Rix & Kay will be undertaking, on a very general basis:

• First and foremost, we will be contacted by our client to advise they are entering into a new mortgage, usually we are also introduced to the broker at this time;
• Typically the lender will instruct solicitors themselves and they will also be in touch;
• After the usual compliance and file set up, we confirm instructions and hopefully receive the lender’s requirements for us to work through;
• Lender’s requirements are, put simply, a list of due diligence questions, Rix & Kay must then fulfil by supplying documentation, such as title documentation, searches etc or answer;
• In answering the lender’s requirements, we will require the clients full co-operation and instructions;
• The lender’s solicitors may raise as many additional enquiries as they see fit based on any information/documentation supplied and Rix & Kay would liaise with our client to satisfy all outstanding enquiries;
• At the same time the lender’s solicitors will provide draft loan documentation, typically the mortgage offer, loan agreement itself (charge document) and terms and conditions (which can usually be found in more detail on the lender’s website);
• Rix & Kay will review the draft loan documentation, take the clients instructions and then Report to you on this documentation;
• If you are happy with the terms set out in the Report you will be issued engrossments for signature and return;
• Once all enquiries are answered, the lender has indicated they are in a position to complete, and we are in possession of signed documents from the client we can look to complete;
• Typically, the lender will have a specified notice period to be able to drawdown funds for completion (typically 3-5days) which will need to be factored into the matters overall timescale;
• Upon completion, monies will either be remitted to the seller’s solicitor if you are purchasing a property, remitted to you if it is a re-finance or as otherwise agreed.
• Post completion, we shall then deal with the relevant mandatory Land Registry application to register the new charge on the Property and latterly any requisitions raised by the Land Registry during processing in due course.

If you require any assistance in entering into a commercial property mortgage or remortgage, please do not hesitate to contact our Rix & Kay commercial property team.

Commercial property finance law expertise

• Legal advice on all loan documentation and due diligence
• Inter-group charges
• Deeds of priority
• Guarantees
• Bills of sale
• Charges over rent accounts
• Corporate based finance

“The team at Rix & Kay is led by managing partner Richard Cripps. Cripps is regarded for his experience in the agricultural sector and also acts on a range of residential and commercial development projects and portfolio acquisitions for a variety of clients”.

“Richard Cripps – commercially aware and no nonsense, concise advice”.

Industry peers praise Rix & Kay in the latest edition of Legal 500