We specialise in enabling your clients to access legal advice in relation to their divorce settlement
- Detach Lending takes all the lending risk and there are no financial undertakings for the solicitor.
- Detach Lending will enable the solicitor to reduce outstanding invoiced amounts and improve your cash-flow.
- Loans are approved to the final hearing or 3 years enabling your client the time to reach a final settlement.
- Quick & Professional service – our team is highly qualified both in the lending and private client market and we seek to provide you with an indicative offer within 48 hours.
- Flexible – loans can be drawn down at any point during the proceedings.
- Interest and fees are rolled into the loan and only settled at loan redemption.
We will take on clients with a realistic prospect of receiving 8-10 times the loan value by way of divorce settlement. We may look at exceptions to this rule on a case by case basis.
We can lend on a secured or unsecured basis.
If the client meets the lending criteria referred to above, we will ask you and your client to complete our client application form. We will provide an initial lending decision within 48 hours.
Unlike other providers we will extend loans for the payment of the following:
- Payment of acting solicitors’ fees and any disbursements, including Counsel’s fees in relation to financial proceedings.
- Payment of acting solicitors’ fees and any disbursements, including Counsel’s fees in relation to Children Act proceedings.
- Living Expenses within a reasonable level.
- Part III MFPA 1984 Applications
- Family Act proceedings
Please note that our expectation is that the majority of the loan will be used in the financial proceedings, and a loan provision for points 2, 3 and 5 will not be extended in isolation but must be as part of an overall facility that incorporates the financial proceedings. Loans proceeds provided for points 2, 3 and 5 are not to be extended beyond the final settlement of the financial proceedings.
The loan facility agreement will clearly state the amount available from the facility for each purpose. The proceeds of the loan in points 1, 2 and 5 will be paid directly into your client account, once your client has approved your invoice.
The loan is linked to your firm and only approved family law firms can use our service with their clients.
Any change or additional appointment of a new solicitor would need to be approved by us, otherwise this would constitute a breach of the loan agreement and the loan would need to be repaid in accordance with the terms of the agreement.
Similarly, if your client decides to act in person, that will constitute a breach of our agreement and the loan will need to be repaid in accordance with the terms of the loan agreement.
- We do not require any financial undertaking from solicitors
- We do require solicitors to undertake to repay the loan from the proceeds of the divorce settlement before passing this on to the client. Your client in signing the Deed of Assignment will have provided you with express permission and instruction to do so.
- We do require you to keep us up to date with any changes to the case, and to provide any supporting information that may be required to fulfil this undertaking.
- We have produced a Divorce litigation charter which we provide to all solicitors’ firms we interact with.
There may be instances where we are not able to lend and a number of these are detailed below by way of example.
- Either party to the divorce is a politically exposed person.
- The borrower does not have leave to remain in the UK, has a passport issued by a high-risk country, and or has been resident in the UK less than 36 months.
- The majority of the settlement assets are held overseas and so loan to value limits cannot be achieved on UK situs assets.
- Significant discrepancy between parties on the value of the overall matrimonial assets. This would be a case whereby one side disputes the value to the extent that minimum loan to value limits cannot be achieved.
- Court cases where multi-jurisdictional proceedings are taking place or where the case is being heard outside of England & Wales or has a reasonable expectation for being held outside.
- Ongoing litigation not related to the divorce proceedings which may materially affect the level of the marital assets.
The above should act as a guide, please do contact us to discuss as, depending on the factors, it is not always the case that this would result in an automatic lending restriction.
We have a minimum loan size of £30,001 with no maximum. The maximum amount of the loan size is solely dependent on the matrimonial assets and the share that the borrower is expected to receive.
Unlike other lenders we can offer a loan term of final settlement or three years, as we appreciate that proceedings have a tendency, particularly when in dispute, to extend beyond the terms offered by other lenders. As such, your client will not be put in the position of renegotiating loan terms should the case not settle within 6-12 months. Should your client prefer a shorter duration loan this will be accommodated upon request.
Detach Lending will provide a loan facility limit at the outset. This will be included in the loan facility agreement signed by your client. In instances where the loan is to be utilised for multiple purposes such as Financial, Children Act or Lifestyle then the loan facility document provides the amount available for each purpose. The facility limit should cover all of your client’s expected legal costs to the final settlement.
This can be up to 20% of the net loan facility and is intended to be utilised to cover additional costs that may arise. The extension of a loan contingency facility is on a case by case basis and is at the sole discretion of Detach Lending.
- Loan Facility Agreement – this document outlines the terms and conditions of the loan arrangement including term, facility level, restrictions relating to usage, conditions for drawing and repaying, interest rate and fees.
- Deed of Assignment – this document allows Detach Lending to take security over the proceeds of the divorce until such point as the obligation to Detach Lending is satisfied.
- Independent Legal Advice - We will issue draft loan facility and deed of assignment documents for your client to take independent legal advice so as to ensure that they understand the documents and the implications of taking out the loan.
- Certification of High Net Worth – As we await our consumer credit permissions then we are currently restricted to lending to certified high net worth individuals. We are happy to provide you with the qualification requirements.
Your client can redeem the loan at any stage, however this needs to be the loan in full plus any outstanding interest due as we do not take part redemption.
Early Redemption - There are no penalties for redeeming a loan early, all we ask for is adequate notice to enable the preparation of the redemption statement.
Detach Lending offers highly competitive lending rates, which are designed to be simple and transparent.
- Detach Lending charges an administration fee of £500 or up to 2% of the facility if higher. This is added to the loan or you can elect to pay this upfront.
- Our standard rate of interest is 1% per month or 12% per annum fixed
- Rate of interest is fixed, and interest is only paid on money drawn down and sent to your solicitor’s client account. Interest is only payable when the loan is settled.
- Independent legal advice usually costs around £300+VAT. This cost cannot be added to the loan.
- Interest is calculated on a simple rate, and so we do not charge compounded interest, this keeps the cost of borrowing down.
- Detach Lending charge a fixed 1% redemption fee on only the amount drawdown, with no early repayment penalties.
The loan interest is calculated on a simple basis, there is no compounding of interest. The annual rate is 12% (1% per month) and is calculated on a daily rate only on money draw down. We will provide you with monthly statements.
Total Facility amount: £60,000. Set-up fee £1,200, CHAPS Fee £25.00. Total amount of credit: £61,225 for 24 months. Interest: £14,694. Interest rate: 12% per annum (fixed). Full facility drawdown month 1 of £61,225. Total amount payable: £76,531.25 (includes £612.25 redemption fee). Representative APR: 13.78%
This depends on the information provided to us. Typically, where the proceedings are at the Form E stage we would seek to turn around the loan application within 2 weeks from receipt of required information.
Loans are drawn by way of a draw down/instalment notice. This is a simple document completed by your client with your guidance on the amounts required to settle outstanding invoices.
The money is paid directly to your client account.
We can be contacted on the following numbers and e-mails. If you have any questions relating to the FAQ, wish to discuss a loan proposal, or a client application form, then please get in touch.
If you would like to discuss any aspects of our services, please contact us:
Detach will fund solicitors’ fees and disbursements including barristers’ fees during legal proceedings whether through court, mediation or arbitration.
Detach will agree a maximum loan facility based on the circumstances of your case which will be paid into your solicitor’s client account. Each time your solicitor raises an invoice he or she will ask for your consent to pay it from the loan facility held by Detach.
Detach can also provide a separate facility to cover reasonable living expenses. You will only pay interest on the amount you draw down and the capital and interest only becomes repayable upon the conclusion of the case.