Onside Issue 6 - 39

39

Protecting our
interests
Jeff Morton

Aziz Shan
Director, Seneca Property
Legal Services Director

E aziz.shan@senecabridging.co.uk

jeff.morton@senecaproperty.com
T 01942 295 982
www.senecaproperty.com

A question I always ask myself and often hear
my colleagues asking when they're considering
lending funds is - "Would I lend my own money
to this borrower?" Whilst asking such a question
is a very worthwhile exercise, our decision making
is made a lot easier by having partnerships with
experts, such as banking and construction lawyers,
who help us to fully understand and control all the
moving parts in a property finance transaction.
It's my role to act as the conduit between our
credit and relationship teams, our lawyers and
the borrower's legal team. Development finance,
in particular, raises some complex legal questions
that take time and effort to resolve. The sheer
number of documents that travel between the
various parties is surprising and this can often
cause headaches for our customers.
However, these documents form the basis of
the most important part of a loan - the security.
The quality of the documents directly affects the
quality of our security and when we're asked to
deliver against tight timescales, we work hard

to ensure all parties are synchronised to deliver
what we want, when we want. This involves a lot
of dialogue and again, by spending time with our
clients in the early stages of a loan and by listening
to what they have to say, it makes a big difference
as a loan nears completion.
Once a loan has been completed, my job is to
monitor its performance until redemption. This will
involve periodic health checks. For developments,
we use Quantity Surveyors to monitor spend on
a project, and review spend against drawdown
requests, but on all loans secured against land or
property it's important that all parties maintain a
high level of vigilance.
There are often unplanned events that may affect
when a loan is likely to be repaid. By maintaining
an open dialogue with our borrowers we try
and minimise the impact of these events on our
security - after all, we want a development or a
refurbishment to be as profitable as possible for
our clients and so it's in all our interests to work
towards successful redemption.



Table of Contents for the Digital Edition of Onside Issue 6

Contents
Onside Issue 6 - Cover1
Onside Issue 6 - Cover2
Onside Issue 6 - Contents
Onside Issue 6 - 4
Onside Issue 6 - 5
Onside Issue 6 - 6
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Onside Issue 6 - Cover3
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