Commercial refinance is the re-mortgage of the commercial world. It’s not unusual in the commercial world for businesses to change arrangements with their bank. Some businesses may borrow money to finance expansion plans. Others may simply change their bank for better terms of business. When this happens and a security over property is needed, we become involved. We look after our client’s interests to make sure the commercial refinance proceeds as smoothly as possible.
You should be aware that unless the new loan is for a fairly modest amount, your old and new lenders may instruct their own solicitors. This has the potential to mean that three firms of lawyers will be involved in the refinancing arrangements.
Before you start
Please speak to us first before you setting off on your refinancing arrangements. The reason we say this is to avoid delay in progressing your refinancing. As your new lender is likely to instruct its own solicitor, it’s very important that we are fully aware of what you’re trying to achieve. We also need to know who your existing loan is with and whether they’re aware of your refinancing plans. We’ll also have to order up the titles and all necessary other documentation.
Progressing your refinancing transaction
Once your new lender has instructed their solicitor, they’ll get in touch with us. They’ll ask for your title and a number of other documents. We’ll send them over to them as soon as we have them. That’s why it’s best to let us know your plans before we hear from your new lender’s solicitor! Next, we’ll answer the questions raised by the lender’s solicitors and review the security documentation they provide. We’ll report to you on the security documents and explain what they mean. As well as that, we’ll liaise with your existing lender or their solicitors to make arrangements to discharge and repay your existing loan. We’ll also arrange to have you sign the new security documents.
Once all of the technical aspects of your refinancing transaction have been dealt with, we’ll arrange settlement. We will arrange delivery of the security documents in exchange for which your lender will release loan funds. When we receive these, we’ll repay any existing loan, deduct the expenses of your refinancing transaction and send the net proceeds to you. Sometimes, commercial refinance is simply an adjustment or increase in your facility with your existing lender. When that happens either no actual funds will be issued, or these will be send to you direct. In such a case, we’ll render our account for the expenses of your commercial refinance to you for settlement.
Commercial refinance transactions can be complex. Much depends on the nature and purpose of the funding and, where more than one lender is involved, there may be a need for ranking provisions. We aim to ensure you commercial refinance transaction proceeds smoothly to settlement.
Do you need help with your commercial refinance?
Many clients have asked us to assist them with their refinancing over the years