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CLOSED BRIDGING PAPERWORK
We
are often asked about the paperwork involved, so to
help, we have put together this page to explain what
we need and why we need it.
What you'll receive from us regarding the Bridging
Loan
Once we have received and approved your application,
our solicitors will send you 2 documents for you to
sign and return.
These are the Facility Letter and the Legal Charge
document.
You
should ensure that the solicitor you have instructed
to act for your purchase advises you on these
documents before signing.
Facility Letter
This outlines the facility we have agreed to offer
you.
It
contains details of the property to be purchased,
the loan amount, the term (1 day) and the security.
The security for the loan will be the property
itself for the period of time for which our funds
have purchased the property until the loan plus fees
are repaid by your re-mortgage funds.
This letter also outlines the agreed fee and
contains other clauses which will apply if the
original funds plus our fee are not returned within
the agreed term.
Legal Charge
The
legal charge document sits along side the Facility
Letter. The Legal Charge document enables us to
register a first charge against the property you are
buying in the event of default. This provides us
with security for our monies in the unlikely event
you have failed to return our funds and fees within
the agreed terms of the Facility Letter.
The
legal charge explains your obligations and our
rights in relation to the property until such a time
as our funds and fees are recovered.
Further information
Should you have any queries regarding these
documents or would like to see example copies in
advance of any application you make please do not
hesitate to
contact us and we can arrange this for you.
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