Help your client buy a property SPV
If you are a UK property lawyer and your client is proposing to buy a property SPV, this page is for you.
Property SPV transactions have a very different risk profile as compared to asset purchases – both for clients and for their advisers. It’s not just the legal issues, but also the market practice and experience of how to manage things smoothly. This includes the feasibility issues, liaising with the wider professional team, negotiating the share purchase agreement and putting all the documents in place.
You don’t really want to turn away the property work – clients don’t grow on trees, and property SPV transactions tend to be for larger transactions sizes. But on the other hand, you don’t want to put your reputation or your professional indemnity insurance premiums at risk by taking on work which is outside your field of competence.
LCN Legal can help
We can give you specialist back-up so that:
- you keep the fees for the property work;
- your client gets the whole job done; and
- your relationship with your client is protected.
- LCN Legal specialises in corporate and investment structures. We regularly publish resources on this subject, as well as contributing LexisPSL’s practice note on buying property SPVs. We work exclusively on the basis of fixed fees, so that you and your client have complete control over the budget.
Our aim is to make you look good
How will we achieve that?
- Before we even start working together, you can use our free resources to brief yourself on why property SPV transactions often abort and what the key tax issues are. This prepares you for preliminary conversations with your client.
- We can give you a free, no-obligation fixed fee quote for the feasibility and implementation phases of the corporate work. You can build this into your own budget, so that the client gets a comprehensive quote for the legal work.
- We can help you tailor your own engagement letter, so that you are being properly remunerated for your work, and you are not taking responsibility for ours.
- For the initial feasibility stage, we can give you a tailored due diligence questionnaire for you to send out alongside your usual property enquiries. You can do as much or as little of the work as you want to co-ordinate responses to that questionnaire, and to report to your client. It’s completely up to you.
- We will provide a tailored heads of terms document for the corporate aspects of the project. This is important, because if there is going to be a fundamental disagreement about those terms (as there often is), it’s better to know that sooner rather than later. Either you can finalise that heads of terms document with your client, or we can do that for you.
- At every step of the way, we will arrange things so that your PI insurance and your reputation is protected, because any work you do on the corporate aspects is focused on liaising with the parties and liaising with your client, and we are clearly taking responsibility for the actual corporate law advice and implementation.
- Because our work is exclusively on a fixed fee basis, not hourly rates, your client can rely on a fixed, comprehensive legal budget. That means that you can set your own fee with confidence.
Download the free checklist
Get started now by downloading your free checklist for taking initial instructions. This checklist is designed to help you take initial instructions from your client, so that you can start to scope out the work and put in place an appropriate budget.