Sound exciting? No, it doesn’t exactly fill you with excitement and have you sitting on the edge of your seat does it.
The thing is that when you are looking at financing a commercial property then the legal side is pretty key. The lender will want the reassurance you know what you are doing and having a capable legal hand can really help get the property finance approved.
What Came First, The Loan or The Legals?
Not quite chicken and egg, but you do need to start somewhere.
When buying or acquiring any commercial property then you have to get the right finance in place. That doesn’t mean the first, or any type of finance, but the structure, cost and terms that all work for what you want to achieve.
The chicken and egg part is that to get your commercial finance approved you need to show you have covered all bases and that the commercial property in question can be used as intended. However, you only want to spend on the legals if you can secure the commercial finance.
Tricky one eh?
Keep It Simple – The Solution
As with most things like this, it is about gaining as much information as possible upfront. Lime Consultancy can provide plenty of information and resources on funding commercial property, we can also give you a decent feasibility report, however the legals are not our bag.
When considering commercial property then check out this blog post from Sarah Edmunds Legal, it covers some really good points and things to consider when acquiring commercial property.
The Sarah Edmunds Legal blog post highlights these as some of the key aims of commercial property advice;
- Making certain that the title is able to be transferred into another owner’s name
- Ascertaining if there are any outstanding legal issues with the property
- Determining any restrictions on the property that may hamper its intended use
When you look at this you start to see the correlation between what you want to know as a borrower and what the lender wants to know.
Just make sure you start the legal conversation the same time as you start the finance conversation, then it should all flow pretty smoothly.
For any questions about this post, or about commercial finance in general then give Lime Consultancy a call on 01293 541333 or contact us direct here.
By Lime Consultancy