In-house legal team ‘adds value’ in bridging process – Kseye

One area of difference between lenders is the approach they take to legal advice, with some opting to use only external counsel and others choosing to supplement this with in-house legal advice.

At Kseye, we have an in-house legal team of three people, and we believe that this definitely adds value at all stages of the process – from the initial enquiry to the legal due diligence, through to the release of funds.

Having our own legal team means we can assess risks quickly and make speedy decisions. If there is a complex issue, which is often the case with bridging, we can review the details at the outset and identify ways to overcome any hurdles. If the problems are insurmountable, we can provide a quick no, which can be just as important for brokers and borrowers.

Other lenders may need to engage with external counsel on such issues, so will take longer to make decisions simply because of the extra steps in the process. Working with external counsel may also cost them money, so they may even be disinclined to consider the case.

In-house legal team makes for a ‘smoother journey’

With an in-house legal team assessing a case upfront, not only does this provide certainty of execution for the borrower, but it also makes for a smoother journey, as we can step in during the process if an issue does arise.

We see a lot of cases where another lender has let the borrower down at the last minute because the legal process uncovered something that the lender wasn’t comfortable with.

A case being declined at the final hurdle wastes time and money and can sometimes result in the borrower missing out on a great opportunity. Nine times out of 10, we can find a solution, as we have a lot of experience and specialist knowledge in this area.

In-house legal team can take a ‘more commercial view’

During the course of a transaction, external counsel, as our professional advisers, will be focused on highlighting the legal risks involved in lending (and rightly so, as this is their role).

However, our own legal team can take a more commercial view as they have a thorough appreciation of the company’s lending policy and appetite for risk, as well as access to the full underwriting file. This commercial, yet responsible, decision-making process helps us get more deals over the line, quickly and without compromising on policy and risk.

Examples of cases where an in-house legal team is particularly useful include foreign national borrowers or where money is being moved from overseas. There are a lot of complex considerations in these circumstances to ensure regulatory obligations are met and, as an in-house team, we can review the facts promptly and upfront.

No two bridging lenders are alike, and how a lender structures its team and processes has a direct impact on the experience received by brokers and their clients.

So, next time you are researching a lender for your client, ask yourself whether that lender has an in-house legal team and how that might impact your application.