Getting a commercial mortgage can be complex
You’ve been searching the market to buy your business and you have probably worked with a specialist finance broker such as Stewart Hindley & Partners who specialise in raising commercial mortgages for the hospitality and leisure sectors, only to find that once your offer has been agreed and accepted the real work is only just beginning! You ask yourself, rightly so, why is it so difficult and complex for what is essentially a property purchase.
So why is it so complex and does it need to be this way?
The answer is it doesn’t. If your firm of solicitors has more than 3 SRA Partners, then in most instances your firm can act for you and the lender, removing another link of complexity in order to make communication more transparent.
However, for a smooth and seamless transaction, your firm of solicitors ideally must be experienced in the commercial mortgage sector, so they’ll know what the lender’s requirements are such as Report on Title, more often than not referred to as RoT, which forms the foundation for the lender’s security. The misconception is that all solicitors are experienced in these matters, which isn’t always the case.
Commercial property mortgages have time constraints
Instructions are generally timeline dependent as you may be selling your property to raise the capital to make up your deposit. The vendor also is probably under similar time constraints, because they, like you have to move!
Stewart Hindley & Partners understand that a number of factors come in to play from your perspective as well as the lenders and the vendors solicitors, all with differing priorities that have to be addressed, to ensure a timely completion. This more often or not is the cause for heightened tension between the property purchaser and the property vendor, when last minute information requests to respective solicitors can derail an agreed completion date that worst case may result in the deal not proceeding.
It has to be said that not all solicitors will communicate timely and effectively and often they are seen as a law unto themselves, which isn’t helpful when you are trying to complete your purchase.
How can a specialist mortgage finance broker help?
This is where a firm of specialist hospitality brokers such as Stewart Hindley can assist in their capacity, not only as commercial property mortgage brokers, but in the crucial role of intermediaries acting as the conduit between all parties to ensure the deal gets done. We at Stewart Hindley understand the complete process from start to finish and we often brief both sides’ solicitors on what the lender requires for RoT to ensure there are no delays that are often the primary cause for one side or the other pulling out of the property transaction.
Stewart Hindley & Partners’ panel of solicitors are experienced in the hospitality and leisure sectors so you can be assured of a timely outcome; inevitably issues will occur during the conveyancing process but Stewart Hindley & Partners is at hand to resolve these before they become unsurmountable and can lead to your purchase falling through.
Hotel Finance Specialists – Commercial Mortgage Experts
For more information on how we at Stewart Hindley & Partners can assist with your finance requirements and how to avoid the pitfalls of “solicitors being solicitors” defending their turf, just get in touch on 01488 684834 without obligation to see if we’re able to help.
