Once the private mortgage lender is ready to proceed the next step is for them to instruct Bransgroves Lawyers to act for them on the advance. This is done by forwarding the signed term sheet to us by email and instructing us to act on the loan. In practice we generally receive instructions from the the broker who cc’s the lender.
Once we are instructed you should ask the borrower to transfer a deposit on our legal fees into our account. Upon receipt of instructions and the deposit on the legals we will perform the searches needed to draft security documents which we create using proprietary sophisticated document assembly. The security documents are sent to the lender, and you, as private mortgage broker, to ensure you are both happy with them.
Once approved the security documents are emailed to the borrower’s solicitor. The security documents include a clause which causes interest to begin running 7 days from the date of their issue. This ensures that if there are delays to settlement caused by the borrower the investor is not left out of pocket.
The borrower must receive independent legal advice on the