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propertylawyer
propertylawyer,
Category: UK Law
Satisfied Customers: 233
Experience:  Solicitor at Bonnetts
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Im trying to find out - my company has a mortgage and a loan

Customer Question

Hi
JA: Hi. How can we be of help?
Customer: im trying to find out - my company has a mortgage and a loan / it has a charge for the mortgage and a debenture on the loan / we are re-financinging but have to do a bridging loan / there is a slight shortfall (is that an issue)
JA: Because real estate law varies from place to place, can you tell me what state this is in?
Customer: Uk
JA: What action has been taken so far? What's your ideal outcome?
Customer: To be able to do the bringing - this will take out the charge - will the debenture b a problem till I get the re-mortgage comes through
JA: Anything else you want the lawyer to know before I connect you?
Customer: That's all
Submitted: 9 days ago.
Category: UK Law
Expert:  propertylawyer replied 9 days ago.

Please explain further the current position and what you are proposing to do.

Thanks.

Customer: replied 9 days ago.
Hi
I'm trying to find out if I can do a bridging loan - it will take out the 1st charge
There is a loan which has a debenture
A majority of the loan will go
The re-mortgage will clear everything
Expert:  propertylawyer replied 7 days ago.

you can use bridging finance in this way, it is the same as a standard mortgage.

Bridging is generally used in the short term, hence the name, as it is generally a more expensive option than standard mortgage finance.

You state that the majority of the loan will go - what do you mean by that? the bridging lender may require a first legal charge and that will mean that all of the current mortgage will need to be redeemed (unless only a small part of it will remain and you can get the current lender to enter into a deed of priority whereby the bridge will take priority over it, not easy to obtain).

Any questions or queries?

Please can I kindly request that you accept or positive rate my reply. many thanks.