Property Financing
Our expert commercial property solicitors advise on all aspects of funding agreements, including securitisation and facility arrangements.
property financing
Secure a favourable deal with expert guidance on funding options
When seeking funding for your commercial property plans, an experienced commercial property finance expert can be a huge advantage.
Our commercial property solicitors have a wealth of expertise to guide you through each stage of the legal finance arrangements whether you are a borrower or a lender. We advise on all aspects of funding agreements, including securitisation, facility agreements and forward funding arrangements.
We help UK and overseas borrowers finance and refinance a wide variety of commercial property including office developments, shopping centres, distribution centres, nightclubs, public houses, restaurants, mixed use buildings, residential developments, industrial parks and brownfield sites.
Our solicitors also act for funders such as high street banks, pension funds and private investors on all elements of property finance including investment and development funding.
The service we provide is highly personalised and comprehensively covers the full suite of finance-related issues. With additional expertise from our banking and securities legal team, we can support securities over land using mortgage deeds, facility agreements with a phased draw-down to fund a development as well as newer forward-funding arrangements.
For a discussion on your business financing needs please speak to a member of our specialist team in St Albans or Luton.
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FAQs
Frequently asked questions
Am I personally liable to the lender?
Yes if the borrower is an individual.
If the borrower is a Limited Company, it will benefit from the fact that the company has limited liability which means that directors cannot be held personally liable for any debts incurred by the company. A company is classed as its own legal entity, so ultimately, it is responsible for any debts accrued. Unfortunately, most lenders will require a personal guarantee from at least one of the directors or shareholders, at which point that individual will be personally liable under the terms of that guarantee.
Can I pay the loan back early?
A loan agreement may allow the borrower to prepay all or part of the loan before the dates specified in the repayment schedule. Lenders often charge early repayment fees because they are expecting to make a certain amount of interest by lending to you on a fixed-rate deal. Although there may be a prepayment fee, the borrower will save on interest if they make such a prepayment.
Will this be a secured or unsecured loan? What does this mean?
Loans can either be secured or unsecured, but it is common for lenders to require comprehensive security from the borrower. A secured loan protects the lender on the borrower’s insolvency. This gives the lender priority over any unsecured creditors, allowing them to maximise their recoveries if borrower insolvency occurs. The main disadvantage for the borrower is that the security often takes effect as a fixed charge, containing terms that restrict the borrower’s use. Ultimately the lender has the ability to sell the asset over which it has security in order to realise cash to satisfy its outstanding loan amount.
An unsecured loan means the lender has no recourse to specific assets if the borrower fails to repay. The lender will rank alongside all the other unsecured creditors of the borrower and may lose some or all its money. This can be better for the borrower as they have flexibility to use their assets with no interference from the lender. However, lenders often charge a higher margin for unsecured loans as the lender is taking on more risk.
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