Commercial Re-financing in Scotland

Re-financing sometimes forms part of a wider business or corporate restructure. This might involve consolidating borrowing across multiple properties, moving lending to align with new ownership structures, or adjusting financing arrangements as part of succession planning.

You may wish to move to a lender who better understands your sector or offers products more suited to your needs. Some clients move from traditional banks to alternative lenders, while others consolidate relationships with a single financial institution.

Commercial lenders often impose strict conditions and deadlines. Their requirements can be detailed and specific, covering everything from the form of title insurance to the content of legal opinions. Understanding and meeting these requirements is central to a successful re-financing.

Delays can arise if title issues, historic documentation gaps, or lease arrangements are not addressed early in the process. Our proactive approach focuses on identifying and resolving potential issues at the outset, before they become obstacles to completion. We request and review key documents early, flag concerns promptly, and work closely with lenders and their solicitors to find practical solutions.

We also maintain clear communication throughout, keeping you informed of progress and any actions needed on your part. When deadlines are tight, we prioritise accordingly and work efficiently to help you meet your funding timeline.

Clients across Kirkcaldy, Glenrothes, Dunfermline, Leven and throughout Fife choose Fords Daly Legal for commercial re-financing because of our commercial awareness, practical approach, and commitment to clear communication.

• Experienced in Scottish commercial conveyancing: We understand the legal framework for commercial property transactions in Scotland and have extensive experience dealing with commercial lenders and their requirements.
• Clear, plain-English explanations: We explain lender requirements, security documents, and legal processes in straightforward language. You’ll understand what’s happening at every stage and what’s required of you.
• Local knowledge: Based in Kirkcaldy, we have strong knowledge of the Fife commercial property market and established relationships with local agents, surveyors, and other professionals.
• Efficient, deadline-focused service: We understand that funding deadlines matter. We work proactively to keep your transaction on track and prioritise accordingly when timescales are tight.
• Regulated by the Law Society of Scotland: We’re fully regulated, giving you confidence that your transaction is being handled by qualified professionals to the highest standards.
• Competitive, transparent fees: We provide clear fee quotations at the outset so you know what to expect. No hidden charges or unexpected costs.

Yes. A solicitor is required to handle the legal work involved in granting and registering commercial security in Scotland. Your lender will require a solicitor to certify title, prepare security documentation, and provide various legal confirmations before releasing funds. The solicitor also coordinates with your existing lender to arrange the discharge of any current security.

Timescales vary depending on lender requirements, title complexity, and the nature of the property. A straightforward re-financing might complete in 4 to 6 weeks, while more complex transactions can take 8 to 12 weeks or longer. Early preparation and prompt responses to queries help minimise delays.

Yes. Company-owned commercial property can be re-financed. The lender will typically require certified copies of company documents, board resolutions authorising the borrowing, and may require personal guarantees from directors or shareholders depending on the lending structure.

Yes. Your solicitor will arrange for your existing lending to be repaid as part of the re-financing process. We obtain redemption figures from your current lender, arrange for the repayment to be made from the new loan funds, and ensure the existing security is discharged from the title.

Yes. If your commercial property is let to tenants, the lender will want to review the lease arrangements. The terms of leases, including rent levels, lease length, and tenant covenants, can affect the lender’s valuation and their willingness to lend. We help you gather the necessary lease information and address any concerns the lender raises.

Title issues are relatively common in commercial property and don’t necessarily prevent re-financing. Depending on the nature of the issue, solutions might include obtaining indemnity insurance, rectifying the title, or negotiating with the lender to accept the title subject to specific conditions. We identify potential issues early and work proactively to resolve them.

Yes. Some lenders offer portfolio facilities that allow you to re-finance multiple properties under a single loan agreement. This can simplify your borrowing arrangements and may offer more favourable terms. We can advise on the legal implications of portfolio lending and ensure each property’s title meets the lender’s requirements.

Costs typically include legal fees for your solicitor and the lender’s solicitor (if separate), lender arrangement fees, valuation fees, and registration dues for recording the new security at Registers of Scotland. There may also be early repayment charges on your existing loan. We provide a clear breakdown of anticipated costs at the outset.

In some commercial re-financing transactions, we can act for both you and the lender, subject to  the value of the load and there being no conflict of interest. This can simplify the process and reduce costs. Where the lender instructs separate solicitors, we liaise closely with them to ensure the transaction proceeds smoothly.

Typically, you’ll need to provide title deeds (or confirm we can obtain these from Registers of Scotland), current lending information, any lease documents for let properties, and identity verification documents. For company-owned properties, we’ll also need company formation documents and board resolutions. We provide a clear checklist at the outset so you know exactly what’s needed.

You may also find the following commercial property services helpful:

• Commercial Property Purchase: Legal advice and conveyancing support for acquiring commercial property in Scotland.
• Commercial Property Sale: Comprehensive legal support when selling commercial premises or investment property.
• Commercial Leasing: Advice for landlords and tenants on lease negotiation, renewal, and lease management.
• Commercial Development: Legal support for property development projects including site acquisition and construction contracts.
• Business Property Matters: General advice on commercial property issues affecting your business operations.