Property Finance Legal Experts in Essex, Suffolk and London

Attwells Solicitors are expert providers of Property Finance legal services. We have extensive experience acting for Lenders, SMEs and Individuals on all types of property finance.

Property finance can be complex due to the many possible variations. Attwells are property law experts making us the ideal legal firm to support you through this process. We have a strong authority within the property sector and can advise you on all types of property finance.

To the left are a list of services we provide in this field, with information for intermediaries too. Below is a brief outline of the types of property finance available:

Remortgaging

Remortgaging is when you replace your current mortgage deal with another.This can be as simple as changing the terms of your existing mortgage with your current lender (which lenders sometimes offer at the expiry of your current fixed interest period) or it can mean changing lenders all together.

The reasons that people tend to remortgage are varied, but common reasons are:

  • A lender is offering a better deal;
  • You have experienced a change of circumstances (such as a divorce or a bereavement); or
  • You would like to release equity in the property

Very often, when you are remortgaging to the same lender, there are very few formalities and some lenders will give you a new deal without the involvement of a solicitor.

If you are switching lenders, the requirements are likely to be more stringent and the process will in many ways feel similar to when you first purchased the property. For example, the lender will require a valuation, searches and will expect your solicitor to undertake adequate due diligence on the property to ensure its suitability as security for their loan.

For pricing please click here.

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Second Charge Mortgages

Second charge mortgages are an alternative to remortgaging if you are looking to release cash from the equity built up in your property. Like first charge re-mortgages, Second Charges use your property as security for the loan. The distinction between a re-mortgage and a second charge mortgage is that the former replaces the existing lending on your property, whereas the latter runs concurrently with the first charge.

Second charges are often used to consolidate debt, fund home improvements and/or to raise capital for other projects.

Sometimes re-mortgaging will trigger substantial early-repayment charges making it an unviable option for equity release. Other times, a client may be unwilling to give up a favourable interest rate on their existing mortgage for the sake of releasing a relatively small sum. In these circumstances a second charge may be preferable.

Whatever your motivation, it is important that you have the right solicitor acting for you on your equity release to guide you through the process and avoid unnecessary delays.

Second Charges Mortgages – From £749 plus VAT

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Buy to Let Mortgages

A buy to let mortgage is a loan for purchasing (or refinancing) residential property which is then let to individuals.

Recent legislation changes have made lending criteria for buy-to-let mortgages considerably more stringent.

Increased SDLT and a phased removal of a considerable income tax benefit for BTL Landlords (where the cost of mortgage interest will no longer be tax deductible) has seen a general decline in the popularity of BTL mortgages in recent months.

Increasingly, BTL investors are acquiring premises through a limited company, as the scheme of taxation for corporates is seen by many as more favourable when compared to the new individual tax regime.

The Property market in London, which has historically been the mecca for BTL property investors has slowed down since the Brexit vote and capital values in the Capital have been on a steady decline since 2016. Other parts of the country, however, seem to be more buoyant.

The focus of BTL investors remaining in London seems to be moving away from Capital Values (bigger gains are now seen to be available elsewhere in the country) and more towards yields.

This has seen a big shift from typical BTL investment away from typical houses and flats and more towards potentially higher yield investments, such as Student Lets and HMOs.

It may be that the appetite for capital returns in London may return when the market is perceived to have bottomed out and there are some bargains to be had.

In the meantime we expect to see a continued pattern of fewer BTL deals being done particularly in London, and increased proportion of those being acquired through corporate vehicles. For the time being this pattern shows no sign of abating.

The fact remains, however, that BTL Mortgages continue to make up a substantial part of the UK Property Finance Landscape. BTLs continue to be the right investment for many who have done the maths and are satisfied that the figures still “stack up”.

Buy to Let Legal Fees:

The fees payable for company buy to lets are as per the Attwells Residential Calculator save that an additional sum of £225 plus VAT is due.

In the event that it is a company buy to let purchase using mortgage finance or re-mortgage then £749 plus VAT is due on top of our residential fee scale.  

For more information please regarding Company Buy to Let please click here.

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Commercial Buy to Let and Investment Mortgages

Commercial investment mortgages are for those looking to acquire or refinance commercial property with view to renting it out to commercial tenants.

For many property investors having a healthy proportion of Commercial Properties is an essential part of a balanced portfolio. For others, perhaps those with a Residential portfolio, the prospect of branching out into Commercial is a daunting prospect.

However, with recent changes to the Residential BTL market and a greater focus on yield based (as opposed to capital based) investments, we are seeing an increase in clients taking the leap into acquiring commercial premises.

Some potential benefits of commercial BTLs:

  • Potentially higher yields
  • A “clear” rental stream, meaning that Tenants need to undertake maintenance or fully reimburse the Landlord for the cost of maintenance
  • Potentially less initial capital expenditure to acquire the site.

If you are looking to acquire a commercial premises through finance or looking to refinance your existing properties, it is essential that you have the right lawyer in your corner.

Company Buy to Let Legal Fees:

The fees payable for company buy to lets are as per the Attwells Residential Calculator save that an additional sum of £225 plus VAT is due.

In the event that it is a company buy to let purchase using mortgage finance or re-mortgage then £749 plus VAT is due on top of our residential fee scale.  

For more information please regarding Company Buy to Let please click here.

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Commercial Mortgages

Commercial mortgages, or owner-occupier Business Mortgages, are for individuals and companies purchasing or re-mortgaging a property to be used as their own business premises.

Renting commercial premises is not the right fit for everyone. Sometimes a business wants the security and certainty of owning its own premises, other times a property comes on the market that is just too good to pass up.

If you do purchase a premises for your business, it is likely to be one of the bigger investments your company is going to make and not all businesses will have/want to use spare cash in the business to purchase the property outright. This is where Commercial Mortgages can help.

Whatever your motivation for purchasing Commercial Premises for use in your business, make sure that you have the right professional team around you.

Lending criteria on Commercial Premises, is often more stringent than for Residential Premises and may come as a surprise, in particular to first time commercial borrower. The paperwork and criteria can seem insurmountable! This is why you need an experienced lawyer in your corner who has dealt with the process many times before.

Commercial Mortgage Finance – From £1099 plus VAT

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Bridge Loans

Bridging Loans are Short Term Finance that are usually arranged within a short time-frame.

Bridging finance is useful to gain capital quickly and typically is an interim solution until a lower-interest, more long term solution can be found. As the name suggests, they exist to “bridge” a gap.

Bridging finance is always used to raise finance quickly, and often in one of the following scenarios:

  • Property Refurbishment
  • To complete a development
  • To purchase property that is unsuitable for lending from a mainstream lender
  • To bridge a finance gap between the acquisition of one property and the sale of another etc.

Since it is for a specific short-term purpose, interest rates can be higher than traditional term loans. A bridging lender will also normally require a clear exit strategy, to ensure that the bridging loan and any interest costs will be fully repaid.

Whatever your motivation for obtaining Bridging Finance, where you are an individual or a company, you need the right lawyer in your corner.

Bridging Finance – From £899 plus VAT

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Development Finance

Property development finance can provide short-term funding for either more extensive new construction projects or large renovations, helping developers to free up their personal capital for other projects or unforeseen expenses.

Loans cover both land purchase and building costs. Loan amounts are based on a percentage of the gross development value at the end of the work Usually development loans are drawn in stages (referred to a “tranches”), part of the loan will be drawn to acquire the land, and subsequent funds drawn for the development.

The reporting criteria to the Lender is usually very strict in Development Finance to ensure that the property is being developed in accordance with a plan approved buy the Lender. There will virtually always be “step-in” rights allowing the Lender to complete any development work to ensure that their security is always protected.

Development finance is amongst the more complex property finance products and there is typically more room for negotiation with the lender on the terms of the loan documentation. It is therefore critical that you have the right lawyer in your corner who can really add value by improving the terms of the loan for you.

Development Finance – From £3499 plus VAT

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Why Use Attwells?

For Our Speed and Diligence: In a competitive market the speed and diligence of your lawyer is key. With Attwells, you can rest assured that no matter what the transaction entails, your lawyers will be proactive in pushing your matter forward to an efficient and satisfactory conclusion.

For Our Competitive Fixed Fees: Attwells are offer competitive fixed fees on all of our Property Finance services, so that from day one, you will know how much your legal costs will affect your bottom line. This is all part of our commitment to transparent and fair pricing.

For Our Proactive Communication: Is there anything more frustrating than not knowing the status of your matter? Or worse still, not being able to get in contact with your lawyer for an answer? At Attwells we understand that communication with the client and their professional team is critical, which is why we will give you regular updates without being prompted. You will always be given the direct line to your lawyer, so you can spend your day running your business, rather than waiting on hold.

We use cutting edge Case Management Software to ensure that staff absences (either through holiday or unplanned) are always covered by colleagues within the department, so you can be sure that your matter will not be delayed by matters outside of your control.

For Our Expertise: We have completed hundreds of Bridging Finance Mortgages over the years so we can say with some confidence that your matter is unlikely to be anything we haven’t seen and dealt with many, many times before.

Property Finance Fixed Fees

By way of indication fees for the following forms of property finance start from:

  • Bridging Finance – From £899 plus VAT
  • Company Buy to Let Finance – From £749 plus VAT
  • Commercial Mortgage Finance – From £1099 plus VAT
  • Development Finance – From £3499 plus VAT
  • Second Charges Mortgages – From £749 plus VAT

If the matter does not proceed to completion then half of the above fee will be due.

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In addition to the fixed fee above the following fees may also be payable:

  • Payable in all cases - Bank Transfer Fee (per transfer) - £40 plus VAT
  • Payable in all cases - Electronic Identification Fee (per person) - £10 plus VAT
  • Search Fees will vary from the type of finance but between £550 plus VAT and £1500 plus VAT

Included in the service

  • Ensuring the lender has good and marketable title.
  • Reporting to you on the security documentation.
  • Discharging any existing lending
  • Securing any new lending
  • Registration of the security at HM Land Registry
  • Registration of the security at Companies House
  • Completion of the remortgage

What is excluded from the service?

  • Legal advice outside the scope of the service described above
  • Tax advice
  • If the property is leasehold it does not include an additional  work ion connection with the review of the headlease.
  • Any property transfers needed for the property finance
  • Any company work outside of the finance that is required

Disbursements

Land Registry Fees are due and will be payable based upon the purchase price and using the following link.

If the buyer is a company taking lending then a Companies House fee will be payable of £23.

In all cases bankruptcy and final searches will be due of £25.

If the premises are leasehold then notice of the transfer of the premises will need to be served on the Landlord whose costs typically range from between £50 and £200. We will confirm he figure once it is known to us.

How long will it take?

Timescales vary and on average it will take 4 weeks but it depends upon a number of factors outside of our control. We will endeavour to complete the finance as quickly as possible within your timescales.

Who will do your work?

Your matter will be undertaken by one of our Property Finance Solicitors: Nick AttwellTanya WarnesMatthew Desborough or Joseph Harrison or our Trainee Solicitors under the supervision of Nick Attwell.

When will I pay?

You will need to pay 50% of the fixed fee on account together with the search fees. The balance of fees and disbursements will be due on completion.

How do I instruct Attwells Solicitors

Instructing us is simple. You can either click on the instruct button below to register your interest or you can call us at your local office. We have offices in Ipswich, Colchester and London. When instructing us please inform us of the office you would like to use.

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The British Business Bank Finance Hub

The British Business Bank Finance Hub is designed to help businesses understand the financial landscape and ultimately access the right finance for their growth potential. It’s an independent, impartial digital hub designed to raise awareness of the different types of finance available for growing UK businesses. Explore finance options and find funding to suit your business.

www.british-business-bank.co.uk

 

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