Hi All,

I have a property contact who would like to borrow some money from me for a closed bridge.

Is it possible for me to do all of the bridging process without using a solicitor. This is because my contact does not want to pay the £250 +VAT that my solicitor is charging otherwise he is quite happy for to loan the money from me. I am new to the bridging side in terms of providing funds and want to be sure that I get them back!

Is this a risky strategy and would you ALWAYS recommend using a solicitor to represent me in this sort of transaction.

If it is possible to loan the money directly to my contacts solicitor? What is the process and what forms or contracts will I need from his solicitor to ensure he does not do a bunk (Not that he would - I dont think but you never know!)?

Regards

Hi Satnam,

When bridging is done via a solicitor the undertakings are binding. If you ask for a direct undertaking for return of the funds you are in a very precarious position if there is a default. Basically you do not have any security as it is never registered and do not have a loan agreement in place.

The short answer is use a solicitor.

Total Awards: 1
Total Points: 0

Satman,

unless you are conversant with the relevant laws and procedures involved with this i would definitely instruct a solicitor, funny how he is happy to pay the 1% (or however much you are charging) but won't pay the extra £500 odd pounds!!

It certainly wouldnt be worth the risk to me and i woud be asking some serious questions about his intentions for not wanting to use solicitors - its not just you that it safeguards, its him as well.

Cheers Fellows,

You are both right I should be using a solicitor for this.

What was I thinking I must be going mad to even consider this!

Regards

Satnam

If you want to burn a hole in your pocket or infact a chunk of your hard earned investments by all means go without a solicitor.

I personally would also without a doubt use a solicitor to provide any sort of funding i.e bridge loans etc - its the safest option

Usman

Absolutely use a solicitor.

__________________
Max Harris
07815 157755 - Please feel free to call, Skype or PM me for an informal chat.
COMPLETE BMV PACKAGING :- RMDs, Fee Free Broker, Closed Bridging & All Legals £395 + VAT.
WANTED: BTS Deals, Land and Developments in London & SE - Generous FFs Paid - Capital for JVs.