Do solicitors cause bridging finance delays?
One benefit of bridging finance is that loan funds can be available quickly. This makes bridging finance particularly suitable for time sensitive deals. However, borrowers can sometimes experience frustrating delays. Are solicitors the main reason for delays?
Research by Brightstone Law found that solicitor delays were actually only the number seven reason for delays. They said that third-party external factors and lender red tape were the main cause.
Many people working in the bridging field feel that solictor’s delays should be higher on the list. Arwel Griffith of Robert Sterling Surveyors said that many solicitors are ignorant of what is required for bridging lending and this can hold up the lending process.
The Financial Intermediary & Broker Association (FIBA) created a panel of professional partners and wants law firms to join it. Adam Tyler the executive chairman of FIBA said that there is an issue of finding law firms with the experience and competence of handling commercial deals. He said:
“Many conveyancing departments are not prepared to admit that they are not equipped for the unique difficulties that can surround commercial finance and property.”
Nick Hayes at Pure Law said that the formula for fast bridging loans is:
“Openness on all sides and the provision of complete and accurate information at the earliest opportunity allow for a genuinely collaborative approach between lender, borrower, broker and solicitors and this represents the quickest way to get to drawdown.”
A good bridging broker will monitor a bridging loan application and help resolve issues that are causing delays.