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Negligent actions by a solicitor over an unregulated bridging loan


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We feel we have been badly let down by  a solicitor involving a bridging loan. He failed to recognise this was a commercial loan and not a standard residential mortgage. This also suggests he did not have the necessary expertise to undertake this type of work on our behalf. This was confirmed by him in forwarding the incorrect set of Terms and Conditions of Engagement (Retainer) sent to us.

 

This stated it was a re-mortgage of the property  when we now find out it actually was an Unregulated Commercial loan. He has totally misunderstood his instructions and considered the matter to be a standard residential re mortgage

 

During our one and only meeting with him at his office he failed to advise on the terms of the loan agreement relating to a commercial bridging loan undertaken on a property we were refurbishing for our own occupation.

 

After we had left his office he then falsely completed and signed the ‘Solicitors Certificate’ on behalf of the commercial bridging loan lender stating he carried out the following during our meeting : -

 

2 – ‘I have explained to the borrowers the extent of their liability and the contents and effect of the lenders form of legal charge/standard security/mortgage deed and the loan agreement which it secures.`

 

8 – Each borrower was seen alone and understood the contents and effect of the credit agreement and legal charge/standard security/mortgage deed.’  

 

9.-the Borrowers was/were familiar with the details of the transaction and signed the Charge/Standard Security/Mortgage Deed and Credit Agreement of their own free will and accord”

 

We categorically state that he did not undertake anyone of these contrary to the provisions of the Certificate. A clear act of dishonesty.

 

We understand this form was sent to him the day before our meeting on the  so he was aware of its existence before our meeting.

 

If he had admitted to us that at our meeting he should have been undertaken the provisions of the Certificate, he could easily have requested for us to return to the office the following day and then to be seen separately and to be advised of the terms of the loan. He failed to do this and the loan proceeded.

 

If he had done this then we would have been aware of the substantial additional costs involved with the bridging loan and would not have proceeded.

 

I would be very interested to note if anyone else has had  a similar problem with a solicitor.

 

Sadly we were forced to sell our home .

 

 

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Hi. I'm sorry to hear this happened to you.

 

At the time you found out about the problem, did you speak to the SRA, the lawyers regulator?

 

HB

Illegitimi non carborundum

 

 

 

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HI HB 

 

Thanks for the response.

 

We have now forwarded it to the SRA as in my mind it is an of dishonesty, just waiting for their response.

 

We have gone down the litigation route but just didn't get anywhere as their solicitor said the form was for the Lender but in any event he lied.

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The Legal Ombudsman (LO) can act even for failures of service that the SRA might not act on.

The LO can refer breaches of the SRA’s codes to the SRA, too.

 

You’d need to raise a formal complaint with the solicitors, and they will need to advise you of the option to escalate to the LO as part of any response.

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Thanks Bazza

 

I have done both. Sadly there are additional errors relating to this solicitor which are now with the LO .

 

 

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