Refinancing Commercial Property

Essentially, refinancing commercial property works similarly to residential mortgages. The process involves using the money from a new loan to pay off an existing one.

When acting for a borrower, a commercial lender will usually instruct its own solicitors. So, in this scenario, our involvement will cover the following aspects:

• We will review the loan facility letter, the security documentation (usually a debenture and mortgage deed and any personal guarantee documentation), report to you on implications and consequences of signing these documents) and attend to the signing and witnessing of them

• We will conduct the necessary searches and due diligence checks on the freehold and, where applicable, leasehold titles.

• We will liaise with the solicitors acting for the lender and provide them with the information requested.

• Deal with the redemption of any existing borrowings and undertake to provide evidence of discharge to the new lender’s solicitors.

• Deal with the registration of the new security at Companies House (if a corporate loan) and HM Land Registry.

In some situations, we can act for both borrower and lender, where there is no conflict of interest or the likelihood of such a conflict arising during the course of the transaction.

Where we are instructed to act for a private lender (and the borrower has his/her own separate legal representation) we will draft all the necessary documentation, including facility agreements and legal charges.

Refinancing transactions are often fraught with complexities, but we can guide you through the whole process and explain clearly what will be involved, any hurdles to be crossed and the likely timescale for achieving completion.

For help with refinancing a commercial property, get in touch with us by calling 01263 800089 or 07940 585939 or email: enquiries@ccclaw.co.uk