June 2019
By Richard King, Head of Sales at Ortus Secured Finance
At Ortus we are continually reviewing how best to speed up our processes whilst retaining the exceptional standard of service we have become known for.
One area in which we have focused much effort is that of due diligence.
Whilst it can, at best, seem an arduous and frustrating task, due diligence is of course an essential component of the lending process.
We therefore try our utmost to make it as pain-free and streamlined an experience as possible, with no requirement for borrowers to produce reams of information, instead concentrating on the fundamentals of the deal.
We understand both sets of solicitors play a key role in the speed of the process and we ensure they turn round legal matters, including review of title and provision of relevant documentation, both quickly and efficiently.
What we have come to learn, however, is that there are several things borrowers themselves can do to expedite the due diligence procedure and minimise some common causes of delay.
Our seven-point checklist for borrowers includes:
1/ Arranging insurance as per the lenders requirements. We see that too often the insurance is left to the last minute and the policy is sent out with incorrect noting of the lender’s interest.
This can also include inaccuracies such as the use for which the property is insured or a different reinstatement value to that requested by the lender. A back and forth then follows taking valuable and unnecessary time to resolve.
2/ Remembering to provide an EPC. This usually arises where the transaction is not an acquisition (an EPC is required when selling a property).
3/ Not forgetting an Asbestos Survey for older properties. With asbestos being a specialist area, it is not always easy to get a professional to inspect and produce a report quickly. If the client is unsure whether they need one, it’s always advisable to speak with the valuer at inspection to ascertain whether one is required so they can instruct a survey early on.
For tenanted properties, it is the tenant’s responsibility to manage asbestos so the first port of call should be to speak with them.
4/ Getting a Fire Risk Assessment. Like asbestos, this is the tenant’s responsibility and, whilst important not least for the tenant’s safety, insurers will generally require that one is in place and being adhered to.
5/ Obtaining gas and electrical certificates for residential properties. This is a legal requirement for occupied properties and again, is usually required to satisfy the insurer’s requirements.
6/ Ensuring KYC documentation is up to date and has been certified.
7/ Following closely Solicitors instructions around execution of facility documents. Nobody wants to sign on the dotted line only to discover that it’s been executed incorrectly and they have to re-sign. Our solicitors provide clear instructions as to how documentation should be executed and it’s important for clients to follow this advice.
We hope that this short checklist is helpful to borrowers in making their experience of the lending process as straightforward and hassle-free as it can possibly be.
The help of our introducers and professionals is vital during the legal process and working together will ultimately drive deals over the line to ensure the client receives the service they expect.
For more information visit http://ortussecuredfinance.co.uk/