Masthaven Finance has introduced an option for bridging borrowers to incorporate legal fees into their loans, removing the requirement to pay these costs before the legal process begins.
Under the revised arrangements, legal fees are added to the agreed advance rather than deducted from it, allowing borrowers to retain the full amount of funding originally agreed.
The change also applies to cases at the lender’s maximum loan-to-value (LTV) limit, where deducting fees from the advance could otherwise leave borrowers with less funding than required.
The option is available from 21 October across Masthaven’s entire bridging range, including transactions where an automated valuation model (AVM) can be used.
Masthaven said the change was intended to address situations where the requirement to pay legal fees upfront could delay a case progressing.
Jim Baker (pictured), sales director – bridging and development at Masthaven Finance, says: “Brokers regularly tell us that having to pay legal fees upfront can be a barrier for clients.
“Removing that requirement gives clients greater flexibility and helps speed up the process.
“For cases where an automated valuation model (AVM) can be used, clients can benefit from even fewer upfront costs.”
Baker adds: “This is a practical enhancement to our proposition and reflects our focus on making bridging finance simpler to navigate for brokers and their clients.”
Michael Cartwright of BuildLoan adds: “This option gives brokers greater flexibility when structuring a bridging case and removes a potential barrier at the outset.
“Being able to add the legal fees without reducing the agreed advance is particularly valuable for clients borrowing at maximum LTV.”
