What to look for when choosing a bridging loan solicitor

Bridging loans can come in handy, whether bridging the financial gap between buying and selling property, renovating property or purchasing property at auction.

But the loan application process isn’t like your run-of-the-mill business loan.

When you apply for a bridging loan, you likely need access to funds quickly, which means completing the application process, along with the associated legal work, needs to be as seamless as possible.

And that’s exactly why you’ll want to consider working with a specialist bridging loan solicitor.

A specialist solicitor like this can protect your best interests and speed up the process.

This guide explores why you should consider a specialist solicitor and what to look out for before making your decision. 

Please note, the information included in this guide is for guidance only and should not constitute legal advice. Always consult a legal professional.

What is a bridging loan solicitor?

A bridging loan solicitor is a solicitor that specialises in all aspects of bridging loans.

From giving legal advice to reviewing contracts, doing their due diligence and handling the complex paperwork.

A specialist solicitor like this ensures funds are secured quickly and easily with minimal stress.

What to look for in a bridging loan solicitor

If you’ve never worked with a specialist solicitor, what should you look for?

Efficiency

Working with someone who knows the bridging loan application process inside out makes the entire process quicker and more efficient, which is key when working on time-sensitive projects.

They know what legal documentation the lender needs, including property and security documents.

Experience

You need a solicitor who has experience in dealing with the bridging finance process. One that has preferably handled a very similar case to yours.

So whether that’s for commercial or individual purposes, find a solicitor that has experience closely matching what you’re applying for.

Extra tip: Ensure the solicitor you’re considering is a member of the SRA (Solicitors Regulation Authority). That means they can be trusted to follow an enforced code of conduct and regulatory framework. 

Knowledge of property law

The legal landscape of bridging finance is unique, so a knowledge of property law is vital.

Property is used as security in bridging finance applications, so solicitors must understand the legal aspects of this collateral.

They must also handle legal charges, navigate the complexities associated with the conveyancing process and comply with regulations.

Without a sound understanding of property law, the process can take much longer than necessary.

Lender panel membership

Before instructing a solicitor to help you with your bridging loan application, check to see if the lender provides a list of approved solicitors.

These solicitors understand the lender’s specific process in detail, ensuring a speedy application process, and have experience in property law and have handled many bridging finance transactions previously. 

Seven questions to ask your bridging loan solicitor

Before moving forward with any potential bridging loan solicitors, it’s a good idea to vet them by asking the following questions. You need to have confidence in the solicitor you choose.

• How many bridging loan applications have you facilitated in the last year?

You want a competent solicitor who has demonstrable experience in dealing with bridging loans. Find out how many applications they’ve supported over the last 12 months.

• What completion time can I expect? 

From initial instruction to getting the funds into your bank account, what rough timeframe can you expect from your solicitor? Chances are, you’ll need access to funds quickly to complete your property purchase or renovation project.

• What’s your communication style throughout the process? 

Clear and prompt communication is key to efficient loan applications, if they’re uncontactable this will slow your application.

• Can I see any previous client references? 

Failing this, have a look at their online reviews to ensure they have a good reputation in the space.

• Can I have a breakdown of your service fees?

You need to budget for all service costs, including arrangement fees and administration costs. The more transparent your solicitor is with their pricing the better.

• How do you ensure compliance with legal requirements? 

Ask about their process for anti-money laundering checks, how do they verify identity and adhere to FCA regulations? — Particularly for regulated bridging loans. i.e. for individuals rather than businesses.

• Do you use technology in the application process?

From digital document signing to electronic identity verification, working alongside a law firm that uses technology can help speed up the application process.

Common red flags to look out for when choosing a solicitor

Avoid working with solicitors who demonstrate certain red flags, such as not understanding the nuances of bridging finance.

Unlike other types of finance, bridging loan lenders require a thought out exit strategy, and the application process itself is very specific.

You need a solicitor who has an intimate knowledge of this type of finance. 

Other red flags to watch out for include:

• Poor communication i.e. slow to respond to emails or responding with little detail
• Solicitors who are vague about costs or if their costs seem too low
• A firm with a heavy workload — this can mean your case is not a priority

Choosing the right bridging loan solicitor is essential

Finding the right bridging solicitor isn’t a decision you should take lightly.

They’re handling important aspects of your finance application, so you need someone who is competent and experienced in this field.

Try and balance the value they represent versus the cost. The cheapest solicitor isn’t always the best fit.

Keep your end goal in mind, for example, to purchase your auction property.

The good news is that we can help you find and compare your bridging loan solicitor options.

How can BLD help?

We connect you with the very best bridging loan solicitors in the UK so you can make an informed decision about who to work with.

Our directory enables you compare your options and ultimately helps you find a specialist solicitor to complete your bridging loan application quickly while accessing expert advice. 

Fill in the quote form on each solicitor’s page to receive a free, bespoke quote, with no obligation to proceed.

Compare bridging loan solicitors

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