You are here: cherry > Press releases for April 2016 > Case Study: Commercial Investment loan to repay Bridging Finance

28 April 2016

Completion on the Bank’s CI2 product, at 66.64% LTV for £516,423 on 5 years interest only.

This case demonstrates the effectiveness of Shawbrook’s network of panel solicitors via its on-site legal partners, Pure Law. The panel was a fundamental driver in achieving completion just six business days after the offer was issued, delighting the client and ensuring significant cost-savings were made with a looming redemption deadline from a separate bridging lender. Moreover, clients are able to benefit from a 10% reduction in fees for Shawbrook business when using a solicitor on this network, providing additional cost efficiencies.

The purpose of the loan was to repay a bridging loan from a lender that was charging a penal rate of interest on the loan, so speed of completion was critical.

Although the initial plan was to proceed on a non-rep basis, it became clear that a full title investigation would be necessary. Due to some uncertainty concerning the planning arrangements on a previously unsuccessful but related application to the Bank, the Shawbrook lending teams, in consultation with Pure Law, decided that proceeding on a represented basis was essential.

Seddons Solicitors, a member of Pure Law’s panel was engaged soon after, with the ambitious completion timescale necessitating a thorough and swift response to all outstanding items. Seddons hadn’t worked with the broker, Shawbrook Strategic Partner Advocate Finance previously but hit the ground running.

This was vital to the interests of Advocate’s client, who were being pressured by their existing bridging lender to complete by April 7th. If this deadline wasn’t met, the redemption figure rose by anything from £13k to £30K. With the client quite rightly nervous about having to foot the bill, Advocate Finance Director David Tonks discovered that the existing lender’s solicitor was not able to complete in time.

After some negotiation and with all other parties in the deal ready to complete, the bridging lender agreed to carry over the same redemption figure, with the work done by Shawbrook lending teams, Pure Law and Seddons key to the client avoiding considerable financial penalties.

Shawbrook Broker Partner, David Tonks from Advocate Finance, was enthusiastic about the availability of the solicitor panel:

“This is the first Shawbrook deal I have worked with Seddons Solicitors on, having obtained their details from Pure Law’s list of panel solicitors for Shawbrook business.

“The service has been outstanding, especially from Partner Simon Noonoo. At every point Simon worked alongside Pure Law to get this case completed in a timescale which, to be quite honest, I thought may not be feasible.

“I will definitely be recommending Simon and Seddons Solicitors to my future clients after an excellent all-round performance.”