Solicitors’ Undertaking to Bank to Discharge Bridging Finance

Solicitors? Undertaking to Bank to Discharge Bridging Finance

Agreed form of wording with banks for undertaking for bridging finance Form No 4 (Bridging Finance )
Undertaking by Solicitors (with form of authority from client ) to account to the bank for net proceeds of sale of the existing property, the Bank having provided funds in connection with the purchase of the new property.
Authority from client(s )
20??.......
To ..........................................(name and address of solicitors )
I/We irrevocably authorise and request you to give an undertaking in the form set out below and accordingly to pay the net proceeds of sale after deduction of your costs to (name ) Bank plc. (name ) Branch.
Signature of client(s ) ......................................................
Undertaking
20.......
To (name ) Bank plc.
If you provide facilities to my/our client (name ) for the purchase of the right of occupancy/leasehold property (the New Property ) known as (description of property ) pending the sale by my/our client of the right of occupancy/leasehold property (the Existing Property ) known as (description of property ) I/we undertake:
1 That any sums received from you or your customer will be applied solely for the following purposes:
(a ) in discharging the present mortgage(s ) on the existing property [delete if not applicable];
(b ) in acquiring a good marketable title to the new property, subject to the mortgage mentioned below [delete if not applicable]; and
(c ) in paying any necessary deposit, legal fees, costs and disbursements in connection with the purchase.
The purchase price contemplated is =N= (..... ) gross.
I/We are informed that a sum of =N= (..... ) is being advanced on mortgage by (name ) [delete if not applicable]. The amount required from my/our client for the transaction including the deposit and together with costs, disbursements and apportionments is not expected to exceed =N= (..... ).
2 To hold to your order when received by me/us the documents of title of the existing property pending completion of the sale (unless subject to any prior mortgage(s ) and of the new property (unless subject to any prior mortgage(s ) ).
3 To pay to you the net proceeds of sale of the existing property when received by me/us.  The sale price contemplated is =N=(..... ) and the only deductions which will have to be made at present known to me/us are:
(i ) the deposit (if not held by me/us );
(ii ) the estate agents? commission;
(iii ) the amount required to redeem any mortgages and charges which so far as known to me/us at present do not exceed =N=(..... ); and
(iv ) the legal fees, costs and disbursements relating to the transaction.
4 To advise you immediately of any subsequent claim by a third party upon the net proceeds of sale of which I/we have knowledge.
NOTE
(1 ) If any deductions will have to be made from the net proceeds of sale other than those shown above, these must be specifically mentioned.
(2 ) It would be convenient if this form of undertaking were presented in duplicate so that a copy could be retained by the solicitor.  


Toggle menu