A key theme throughout the discussions was the importance for borrowers to fully understand the commercial and legal aspects of their funding arrangements. Considerations such as interest rates, fees, exit charges, repayment structures and security requirements all play a significant role in determining the suitability of a particular funding route.
Early legal involvement is critical
Paris Smith emphasised that engaging legal advisers at the earliest possible stage of a project is essential to achieving a smooth and efficient transaction. Lawyers play a crucial role in ensuring that the terms agreed with lenders accurately reflect the borrower’s expectations, particularly around repayment terms, conditions precedent and the overall structure of the deal.
Where legal advice is sought too late in the process, borrowers can face unnecessary delays and pressure, often resulting in rushed negotiations. Early instruction allows lawyers to identify risks, negotiate favourable terms and help structure transactions effectively from the outset.
Transparency with lenders reduces risk
Another central message from the event was the importance of transparency. Borrowers were encouraged to disclose any potential issues — particularly environmental or structural concerns — at the earliest opportunity.
Lenders will carry out detailed due diligence on matters such as property occupation, lease terms, environmental risks and insurance availability, all of which can impact funding decisions. Addressing these issues early helps avoid delays and increases the likelihood of a successful outcome.
Supporting successful funding outcomes
Paris Smith’s Property Finance team works closely with borrowers, lenders and other stakeholders to guide clients through the complexities of property finance transactions.
While there is funding available for a wide range of projects, the level of risk associated with a development will often be reflected in the cost of borrowing. Careful structuring and early professional advice can make a significant difference to both cost and outcome.
Conclusion
The key message from the event is clear: borrowers who are transparent from the outset and engage legal advisers early in the process are far better positioned to secure funding efficiently and on favourable terms.
James McNeil, Head of the Banking team stated “Paris Smith remains committed to supporting clients at every stage of the transaction, helping them navigate complexity, mitigate risk and deliver successful projects. Our Property Finance and Banking teams are always happy to have an initial discussion on a no fee basis to see how we could assist on a property finance matter.”
For more information, please contact our Property Finance Team on 023 8048 2482 or 01202 162042.
For press and media enquiries, please contact:
Sue Murphy
Practice & BD Director
T: 07436 339318
E: sue.murphy@parissmith.co.uk