May 2019
Jack Coombs, director at Aspen Bridging, considers how The Professionals can help, and hinder, the bridging process. (And he’s not talking about the excellent 1970s TV show about the high-level anti-crime unit, CI5.)
The Oxford English Dictionary has multiple definitions for the word ‘professional’, two made me think:
3 (a) Extremely competent in a job
6 (a) A person who engages in his livelihood in some activity also pursued by amateurs
In the property finance industry where service and delivery is everything, every individual in the chain has a very specific role which needs to be carried out by the right professional team to reach completion.
Nowhere is this truer than in the specialist finance sector, and in particular the bridging market where time is of the essence.
The industry is awash daily with stories of unsuitable solicitors being instructed which has caused applications to falter, stall or even collapse entirely for no other reason other than a lack of knowledge of exactly how bridging, and sometimes basic conveyancing, truly works.
But it’s too easy to lay the blame elsewhere, we as a lender are set-up to make sure this doesn’t happen.
Time-based service excellence
Earlier this year we published our time-based service excellence targets in which we aim to take the majority of business from enquiry to completion in just three to 10 days.
This is based on a certain caveats – which assumes immediate valuation and legal payment, ready property access and quick response from borrowers and their solicitors – and the decision was supported by figures showing 81% of cases are currently completed within 10 working days when the stipulations are met.
Within this, the client’s solicitor plays a key role and ten times out of ten we will advise the broker and their client on who to retain should they wish to meet these timescales.
We have put together a list of recommended solicitors to help this process and these are all professionals we have dealt with acting for previous clients who know how to work to time.
Invariably we find that by following our recommendations here the whole flow goes a lot smoother.
Removing barriers
As well as the correct supporting professionals, it is imperative that everyone working for the lender understands their role and what is and isn’t required to complete a transaction. This can actually remove professionals from the process.
At Aspen every stage from application through to completion is handled by one specific experienced underwriter who will ultimately visit the site to meet the client with the valuer within 24 hrs of a request.
Recently a client was unable to finish a three-house property development due to limited cashflow and no warranty, but we were able the help get them back on track.
With two properties wind and watertight and the third at foundation level, we were onsite and worked with building control and warranty providers to ensure all work-to-date was agreed.
Once the team had established a good understanding of the project and the developer’s plans, we reviewed the planning and regulatory compliance in-house and took the decision not to instruct a building surveyor to reduce upfront costs.
A £228k Finish & Exit bridge was agreed over 10 months at 0.69%, but most importantly a step was removed to clear the path to completion.
This isn’t TV
Ultimately if the right team isn’t used the client’s application will fail, there won’t be the typical TV ending with everyone walking off happily into the sunset.
The right selection is everything, and it starts with selecting the right lender.