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Legal Updates
When is default interest too much in a loan agreement? – Houssein v London Credit Ltd [2025]

When is default interest too much in a loan agreement? – Houssein v London Credit Ltd [2025]

The High Court has ruled in Houssein v London Credit Ltd [2025] EWHC 2749 (Ch) that a 4% monthly default interest rate on a property loan was enforceable and not a penalty. The case is a key win for private and non-bank lenders, confirming that strong default clauses can stand if they reflect genuine commercial risk. If you lend secured funds for property deals, make sure your facility or loan agreements are properly drafted and commercially justified. Steven Mather Solicitor advises on facility agreements, loan agreements and secured lending documentation.

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“Good faith” really does matter in contracts – Saxon Woods v Costa – Spring Media case

What is Good Faith in contracts? The Court of Appeal’s decision in Saxon Woods Investments Ltd v Costa shows how seriously courts take good faith obligations in shareholders’ agreements. The case involved an unfair prejudice petition where a director delayed a promised company sale, breaching both the agreement and his duties to minority shareholders.

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When helping a friend turns into breaching a non-compete – Spill Bidco Ltd v Wishart [2025]

When helping a friend turns into breaching a non-compete – Spill Bidco Ltd v Wishart [2025]

When you sell your business, your non-compete clause might stop you doing more than you think. In Spill Bidco Ltd v Wishart, a seller who funded and advised friends’ new ventures was found to have been concerned in competing businesses – breaching a standard non-compete clause. The case shows that even lending money or helping out informally after a sale can cross the line.

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