This is a ‘rental’ fee and is generally paid every year, or for longer contracts may be payable in advance for the term. Of course the longer the term, the lower the charges. Applicants would be expected to fund legal costs and any associated bank fees and transfer taxes (if applicable). It would not be advisable to enter into any type of collateral transfer (or ‘lease’) arrangement unless one could afford to foot a bill of around 25 basis points (0.25%) of the amount they are seeking in advance and to ensure that they can sustain cost of borrowings at around 8% per annum, plus the costs of credit line interests of a further 3.5% per annum. It is by no means a cheap way of borrowing, but it is quick and if done correctly can be very secure.