When you provide a personal guarantee to the bank or another lender, you are agreeing to act as a guarantor for the money owed (and so the debt obligations) by another party - for example your limited company. This means that if your company misses a repayment or an event of default arises, then you have guaranteed that you will step in and pay.

iLA | Personal Guarantee

Personal Guarantee

A legal charge is also known as a secured loan. It is a legal document signed by you, the borrower, which is registered against the property at the Land Registry. It protects the money that the bank or a lender has lent to an individual or a company, and gives the lender the power of sale over the property, should the repayments not be met or there is an event of default. The legal charge will also notify any potential buyer of the existence of the debt.

iLA | Legal Charge

Legal Charge

A standard form third party legal mortgage over a property (often referred to as a legal charge) is usually granted by a company or an individual in favour of a lender, securing monies owed by another party to the lender. They are ‘a third party’ to the underlying loan agreement. Similarly to an ordinary legal charge, it protects the money that the bank or a lender has lent to an individual or a company, and gives the lender the power of sale over the property, should the repayments not be met or there is an event of default.

iLA | Third Party Legal Charge

Third Party Legal Charge

If you take out a loan, you might have to sign a debenture. The term 'debenture' refers to a secured loan agreement between a lender and you, the borrowing business, and it is registered at Companies House. It gives the lender security over the borrower’s assets - and so if a repayment is missed or there is an event of default, the lender can take ownership of the assets and sell them off. A fixed charge is normally taken out against a tangible asset such as property. If there is a payment default by the borrower, the lender can take ownership of the asset and sell it off. The borrower also can not sell the asset without the lender’s consent.

iLA | Debentures

Debentures

A bridging loan (or 'bridge loan') can be useful if you need to borrow money for a short period, typically over a 12 month period. One of the benefits of a bridging loan is that the application process is usually very quick. You can apply and receive approval in days in comparison to the long application process associated with a mortgage.

iLA | Bridging & Development

Bridging & Development

A subordination agreement is a legal document that establishes one debt as ranking behind another in priority for collecting repayment from a debtor. The priority of debts can become extremely important when a debtor defaults on payments or declares bankruptcy. A subordination agreement acknowledges that one party’s claim or interest is superior to that of another party in the event that the borrower's assets must be liquidated to repay the debts.

iLA | Deed of Subordination

Deed of Subordination

Put simply, a Joint Borrower Sole Proprietor mortgage (JBSP) is a way for a relative or close friend to apply some of their income to a buyer’s mortgage application, without joining them on the deeds. This makes a JBSP perfect for lower earners or young adults who might just be starting out in their careers and struggling to meet affordability requirements.

iLA | Joint Borrower, Sole Proprietor Mortgage

Joint Borrower, Sole Proprietor Mortgage

An Occupiers Consent Form is a common requirement of a mortgage lender when there are adults living in a property who are not being named on the mortgage. A typical scenario is a cohabitee who is not named in the title register / mortgage.

iLA | Occupiers Consent Form

Occupiers Consent Form

ID verification has always been essential in property transactions - without it, a fraudster could easily put a charge on your property or transfer your equity. This is one of the reasons why Land Register will require ID verification from you. We are able to assist with all forms of ID verification, both online or in person.

iLA | ID Verification

ID Verification

More people are using gifts (usually from family members) to fund all or part of their deposit for a house purchase. As part of the mortgage process, a lender will normally ask for confirmation that it is a gift, that no part of the gift is repayable and that each gifter will have no stake in the property or live at the property. As the gifter will effectively be giving up any rights to repayment or entitlement to the property,, a lender may not allow the mortgage to complete until they have received confirmation that the gift giver has taken independent legal advice.

iLA | Gift

Gift

A transaction at an undervalue is, in simple terms, a transaction where an individual or corporate entity acquires a property for less than its market value. For example, parent’s gifting property to their children to help them onto the property ladder, a gift between family members as part of estate planning or even a transfer between husband and wife following divorce proceedings. These may all be considered a transaction at an undervalue. Whilst there are benefits for the seller and buyer in each of the above scenarios, it carries inherent risks whereby a lender may ask for independent legal advice to be provided prior to completion of the mortgage or loan facility.

iLA | Transaction at an Undervalue

Transaction at an Undervalue

In terms of a transfer of equity, the ‘equity’ in a property is defined by market value less the amount of outstanding mortgage. ILA is required when there is a change to the mortgage/ownership of the property. An example of this would be the transfer of equity into joint names as a result of marriage. Alternatively, there may be a need to transfer equity from joint to sole ownership.

iLA | Transfer of Equity

Transfer of Equity

Equity release is a way of releasing cash from your home without having to move – but it comes with certain risks. It is important you understand these risks and take the time with a solicitor to explain these to you. It is also important that you are not being forced to access the money tied up in your home.

iLA | Equity Release

Equity Release

A Declaration of Trust confirms how an asset, for example a property, is to be held on trust. The property owner can hold a property on trust for themselves (as beneficial owners), or they may hold the property on trust for someone else. Where the asset is a property, it will usually also deal with the portion of ownership of the property, as well as any other terms the parties wish to agree.

iLA | Declaration of Trust

Declaration of Trust

A consent order is a legally enforceable document that confirms the agreement reached between a divorcing couple. For example, a consent order may deal with the transfer or sale of the family home, payment of lump sums or periodical payments (spousal maintenance) or pension sharing.

iLA | Consent Order

Consent Order

A cohabitation agreement is a form of legal agreement reached between a couple (or otherwise) who have chosen to live together. It can cover how you’ll share the rent or mortgage and bills and how to deal with any bank accounts, property or assets if you should separate.

iLA | Cohabitation Agreement

Cohabitation Agreement

A separation agreement is entered into when you have decided to separate from your partner and live apart. It sets out the arrangements you want to make for things like finances, children and property. You can use one whether you are married or unmarried, and is often used whilst you decide if you will get a divorce or dissolve a civil partnership.

iLA | Separation Agreement

Separation Agreement

A prenuptial agreement is a contract entered into before getting married, which sets out the financial terms of the relationship. A postnuptial agreement does exactly the same, but it is created during the marriage rather than beforehand.

iLA | Post and Prenuptial Agreements

Post and Prenuptial Agreements

A pre-civil partnership agreement is a formal agreement that couples enter into before entering into a civil partnership to set out how their finances and assets will be divided should they split up. A post-civil partnership agreement does the same thing, except it is entered into after the civil partnership.

iLA | Post and Pre Civil Partnership Agreements

Post and Pre Civil Partnership Agreements

Litigation funding, also known as third party funding or litigation finance, is where a third party (with no prior connection to the litigation) agrees to finance all or part of the legal costs of the litigation or legal claim, in return for a fee payable from the proceeds recovered or settlement agreed.