A bridging loan is subject to number of fees payable by the borrower. Vitvo makes clear what these are in any Decision In Principle or Loan Offer provided to a borrower. Except for the Valuation Fee, all of the following charges are usually deducted from the total bridge loan amount agreed, so leaving a net bridge loan amount that is actually advanced to the borrower.
A borrower is charged the following fees:
Valuation Fee. This fee is to pay for a valuation report of the property or properties being offered as security by the borrower for the secured loan. The report is instructed by Vitvo and is conducted by a RICS surveyor. If the borrower wishes to progress their application beyond the Loan Offer stage, Vitvo will require the prospective borrower to pay upfront for this valuation report before it is instructed.
Arrangement Fee. This is a fee for providing the bridging loan and is payable at the time the bridge loan is advanced and not before. Part of this fee is paid to an intermediary (such as a bank, accountant or broker) if there is one and this part of the fee is sometimes referred to as a Procuration Fee.
Legal Fees. These are the legal fees incurred by Vitvo to complete our due diligence and to complete all the required legal processes. These fees will include various disbursements necessary for Vitvo’s nominated solicitor to carry out the legal due diligence process, such as, for example, Land Registry Search fees. Vitvo will require the borrower to provide an undertaking as to these legal fees before due diligence can be commenced by Vitvo’s nominated solicitor. In addition, Vitvo expects every borrower to be advised by their own solicitor and the borrower will obviously be responsible for these fees as well.
Administration Fee. This is a fee to cover the lender’s internal costs in providing the bridge loan and is payable at the time the bridging loan is advanced and not before.
Bank Transfer Fee. This is a fee for facilitating the transfer of funds to the borrower when the bridging loan is drawn down.
This information is strictly for the use of approved intermediaries only Vita Solvo Ltd registered in England and Wales with company number 08251204 having its registered office at Flat A Melcombe Regis Court, 59 Weymouth Street, London, W1G 8NS