Process & Fees
The advice process starts with gathering the detail from you the client on your experience particularly where relevant to your project and what you are seeking to achieve. Good communication and clarity are very important here as it is this information which determines:
- The key strengths and weaknesses of the proposition.
- Whether or not your proposals are achievable and how best to structure the proposition to make it easily understandable and acceptable to a lender.
- Which lenders are likely to be receptive to a lending request and what the likely costs will be to the client.
- Agreeing our own fees with you.
Once we have agreed that a sensible and acceptable way forward exists we need to pull together all the documentation whether this be planning approvals and schedules of work for a development project or a full breakdown of a property portfolio to facilitate equity release to expand the portfolio. With the detail available we then formally approach the most appropriate lender on our panel to meet your needs – the process varies from lender to lender whereby some issue outline terms and others issued sanctioned terms subject to valuation. The valuation follows the initial agreement and providing the valuation is in line with expectations the next step is the issue of the formal offer which once accepted leads naturally to commencing legal work and then completion.
With short term loans/bridges certain of our lenders will be prepared to instruct the valuation and start the legal work either on the initial enquiry or immediately upon receipt of acceptable Heads Of Terms.
CFS has a focus on getting the detail correct at the start, selecting the lender and then processing the case efficiently to achieve completion – CFS is part of the team and always seeks to help you and your other professionals to achieve a prompt result.
As with other professional providers CFS charges fees commensurate to the type of facility, complexity of the transaction and cost of the funding. We seek to build long term relationship so our fees are always discussed and agreed in advance and are transparent – for example:
- With most bridging/short term loan requests we only charge a one off packaging fee of £500.00 – this is charged once the transaction has, based upon the information provided by the client, been assessed as achievable and is payable before an application is submitted to the lender.
- With commercial mortgages the level of work and the sourcing of funding can be considerably more involved – in these instances we charge the usual packaging fee of £500.00 and, once the offer has been issued by the lender (this is the full offer and not an agreement in principle) a Client Fee of up to 1%. The level of fee is determined by the size of the debt and the level of commission payable by the lender and commission payable to any introducer of the business – the aim is a balanced position and a fair result for all.
- CFS will never email you and ask for either your personal or business bank account details.If there is a need for such detail this would only be to complete direct debit mandates for applications to lenders and in these instances you will be providing the detail when returning your signed direct debit mandate.
- For certain lenders CFS instructs the valuation – in these instances we will take a credit/debit card detail from you by telephone but only for payment directly to the Valuation Panel Manager employed by the lender – formal automatically generated receipts by the Panel Manager will be sent to you by email; you will always know the cost before making the payment. CFS will never ask you to give your card details for any other reason whatsoever – any such requests should be declined and the approach reported immediately to CFS.
- Commercial Financial Services is a brokerage – we are not a lender but can arrange a lender to assist you if the proposition works.
- Commercial Financial Services is a trading name of Simon Jeremy Purdom who is authorised and regulated by the Financial Conduct Authority.