On 4 April 2020, the government updated its guidance for employers in relation to the Coronavirus...
To provide one example, if you are purchasing or re-mortgaging a property in the name of a limited company, a lender may require (by way of a condition that must be met before monies will be lent to the company) that you as an individual enter into a Personal Guarantee. Contact our team on 01245 453 847.
A lender will require a personal guarantee to provide it with security so if the company default on its obligations, you as an individual will have to meet the financial commitments instead.
A firm of solicitors will already be acting for the borrower company, so they will not be able to advise an individual guarantor due to a potential conflict of interest. Our solicitors will advice an individual to obtain independent legal advice on the implications of entering into a Personal Guarantee. At Birkett Long our team of lawyers are able to advise and will have you sign a certificate confirming that advice was given, and witness the company director’s signature on the guarantee.
At Birkett Long our team of solicitors are able to advise on personal guarantees and witness your signature on that guarantee. If the lender requires, we will also sign a certificate confirming that the independent legal advice was given
We frequently provide independent legal advice on the terms of personal guarantees. If you require assistance, please do not hesitate to contact Thomas Emmett.