Need independent legal advice on a personal guarantee?
I’m Steven Mather Solicitor and I have acted for hundreds of business owners, landlords, directors and other individuals who are looking for independent legal advice, usually on bank lending. Each time you get:
- Plain English Advice
- Time – to understand your situation and all that you’re faced with
- Results – getting the best possible result for you
- Value – fixed fees for your certainty where possible
- Convenience – meetings by video call at a time to suit you
Urgent Independent Legal Advice?
Do you have an urgent matter?
Call me now for an appointment or book online. I can usually see you within 24 hours.
What is an Independent Legal Advice (ILAs) certificate?
Directors of Limited Companies are often asked by Banks and other lenders to sign personal guarantees to underwrite the company liability.
I have dealt with ILAs and personal guarantees from:
- Barclays Bank
- Handlesbanken
- Natwest
- RBS
- HSBC
- Aspen
- Sancus
- plus many more
More frequently, I have seen Landlords who have created a Limited Company through which they purchase property. The Bank will provide mortgage funds to the Company, but only if the landlord/director(s) give a personal guarantee.
They are not just for personal guarantees on mortgages though. They can also be used for overdrafts and other business loans.
I am also used to providing independent legal advice certificates on Equity Release Loans.
The Bank requires that the personal guarantee is reviewed and that you are given advice on it, by an independent solicitor.
What is a personal guarantee?
A personal guarantee is a legal commitment made by an individual (the guarantor) to repay a loan or debt if the primary borrower defaults. This means that if the business or individual who took out the loan cannot pay it back, the guarantor is personally responsible for covering the debt. This often involves putting personal assets, such as property or savings, at risk
Independent legal advice is crucial when signing a personal guarantee for several reasons:
- Informed Consent: It ensures that you fully understand the terms and implications of the guarantee. A lawyer will explain the risks and obligations involved, helping you make an informed decision.
- Conflict of Interest: An independent lawyer, who has no stake in the agreement, can provide unbiased advice. This helps protect your interests and ensures that you are not being pressured into signing
- Enforceability: Having independent legal advice can make the guarantee more enforceable. It demonstrates that you understood and willingly accepted the terms, which can be important if the agreement is ever challenged in court
- Risk Awareness: A lawyer can highlight potential risks and liabilities that may not be immediately obvious, ensuring you are fully aware of what you are agreeing to
I already have a solicitor – why can’t I use them?
Your lender will usually require Independent Legal Advice to be provided by a solicitor in a different firm to the one doing the underlying transactional work i.e. the property purchase.
I am a truly independent solicitor, and therefore am able to provide independent legal advice to you. While I am independent, I do know many of the local Leicester Bank Relationship Managers and they should know me, which sometimes makes getting the paperwork sent a little easier. I do work nationally as well.
How much does independent legal advice cost?
I charge £550 plus VAT for providing independent legal advice that is per director per loan. These days, we can usually deal with it by Zoom/Teams, but face to face meetings can be arranged at a small additional venue cost.
Next Steps
If you’re unsure on the question of fees, or on any aspect of getting independent legal advice and need to speak to a solicitor, then call me, Steven Mather.
Just fill in the form on the side of this page, or give us a call to discuss further.
Steven Mather
Consultant Solicitor
Call 0116 3667 900 or email steven@stevenmather.co.uk