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Periodically, we come across cases that we believe other property investors would be interested to learn about. The summary below is one such case, highlighting the client’s unique requirements and how we provided a solution they were happy with. We hope you find this recent case study helpful.
The Property
In today’s complex market, it’s essential for clients to explore all available cost-saving options when refinancing. For large, complex transactions, focusing on more than just the interest rate is crucial. Every detail matters to reduce monthly commitments.
My client came to me looking to refinance two semi-commercial properties, to repay their current lender and reduce their monthly commitment.
With the loan size being over £2,000,000 the legal fees were a big consideration as part of the loan.
Client Background
My client recently saved over £7,500 in legal fees, by choosing a lender that offered sole representation along with the use of title insurance. This highlights how selecting the right lender can lead to substantial savings.
What is sole representation?
Traditionally when financing a property, two sets of solicitors are involved. One representing the lender and another representing the borrower. With sole rep, the lenders solicitor will handle all legal matters on behalf of both parties, removing the need for the borrower to instruct their own solicitor.
What is title insurance?
Title insurance is an indemnity policy that covers many legal enquiries. The most common being local authority searches, but can also cover issues such as building regulations sign off, planning permissions and any defects on the land registry title deeds. This can save a lot of time during the legal stage, so if speed is important this is a great point to consider when choosing an appropriate lender.
By utilising both sole representation and title insurance, my client saved over £7,500 in legal costs alone! Without these options, the total legal costs would have been nearly three times higher!
How can Advocate Finance help?
Advocate Finance are experts in Semi-Commercial property finance, and have expert knowledge when it comes to topics like title insurance etc. If you or someone you know is looking to refinance their portfolio properties, please get in touch and we can see how we can help.
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