What is a closed legal panel?

In the realm of mezzanine development finance, it’s common for specialist lenders to use a closed legal panel. This panel consists of a specified list of solicitors who are authorised to represent these lenders. When you seek mezzanine finance, you’ll typically select your legal representation from this list. In some instances, joint representation is possible, where the chosen solicitor’s firm represents both you and the lender.

However, certain lenders with a closed panel might only provide sole representation, representing themselves exclusively. In such scenarios, you have the option to appoint your own solicitor, as long as they fulfil specific criteria set by the lender. It’s crucial to be aware that in situations of sole representation, you will be liable for two sets of legal fees: one for your solicitor and another for the lender’s solicitor.

This approach in mezzanine development finance ensures that all legal aspects of the transaction are handled by professionals familiar with the specific requirements and intricacies of this type of financing, while also giving you some flexibility in choosing your legal representation.