Businesses looking to refinance or buy commercial property have been urged to ensure their business records are up to date by law firm Clarke Wilmott.
Further rate cuts are expected both this and next year, with the next meeting from the Bank of England’s Monetary Policy Committee taking place on 7th November.
Records should include regulatory information such as asbestos reports, fire risk assessments, gas and electrical safety certificates, and buildings insurance.
Businesses should also address any issues with titles, or any boundary or access issues, and ensure indemnity policies and environmental reports are up to date – to ensure they can access finance when the time comes.
Andrew Stokes, a commercial property partner at national law firm Clarke Wilmott, said: “This information is needed when refinancing property already held, as well as on new acquisitions in addition to obtaining updated title information and carrying out a suite of searches, once the funding transaction is underway.
“A borrower should brief their solicitor on the requirements under their facility agreement and the security documentation being granted prior to the bank instructing their own lawyer to avoid any delays.
“Borrowers should also consider whether independent legal advice may be required for any personal guarantees, or any documentation required, in relation to director or shareholder loans.
“If this can be achieved before solicitors are instructed, it should help speed the process up so that the funding transaction can progress in an efficient manner. Otherwise, your transaction could be delayed while any unknown issues are rectified.”
