# Fast, Hassle-free Legal Charge Advice - Professional, unbiased advice - Quick turnaround - Transparent, fixed pricing - Secure online appointments, fully remote - Personalised support from specialists - Compliance with solicitor and lender requirements [Book Your ILA Appointment](https://www.ila.co.uk/contact#ila-legal-contact) ## What is a legal charge? When securing a loan, whether it’s for a mortgage, business loan, or something else, lenders might require a legal charge on your property as collateral. A legal charge is a formal security agreement that gives your lender certain rights over an asset. In real-world practice, this would imply that failure to meet your financial obligations would result in your lender recovering the outstanding debt owed from your asset. ### Read More Lenders can force a sale of your asset (or property, in this case) if debts are not repaid within the stipulated time agreed upon in your loan document. Small business financing advice can help you understand the implications of legal charges, clarify complex causes and avoid legal challenges. Given the serious implications, it’s crucial to fully understand what you’re agreeing to before signing. That’s where iLA steps in to help. **Legal charges are also known as:** - Security charges - Charge over assets - Fixed charge, floating charge - Security interest - Company charge - Collateral charge - Mortgage charge It commonly appears on loan agreements, companies house filings, commercial mortgages, bridging and development finance, asset finance arrangements, and personal guarantees supported by security. ![Independent Legal Advice for Legal Charge](//iladvice.b-cdn.net/images/2025/07/04/independent-legal-advice.webp) fas fa-comment-dots Ila provide clear, jargon-free guidance fas fa-exclamation Before you sign, you must fully understand what you’re agreeing to ## Why Independent Legal Advice Matters for Legal Charges A legal charge isn’t just a formality, it’s a binding commitment that could have significant consequences. Lenders require you to get independent legal advice (ILA) to ensure that you fully understand the risks, your obligations, and the impact of signing. ### How Does a Legal Charge Work? In simple terms, a legal charge secures your loan by allowing the lender to recover their money if your business can’t repay. Lenders typically require security over a business asset when you take a business loan. This asset may be your business’s property, equipment or any other valuable. It's registered as a formal charge that helps lenders protect their funds and gives them rights over your property. If you’re unable to repay your loan, your lender can block the sale, remortgage and transfer of your assets until the debt is repaid. You should be able to continue using those assets, but you’ll need your lender’s consent to sell or refinance them. In the event your loan is not repaid, your lender can enforce the legal charge and recover the outstanding debt as per the agreement. ### Types of Legal Charges — Fixed vs Floating copy Legal charges are not a requirement to obtain a business loan, but many lenders require this as part of limiting their lending risks. It’s also dependent on the type of loan you’re planning to apply for and your lender’s policy. For example, since unsecured personal loans are offered based on your income and credit score, you may not have to agree to a legal charge. However, when it comes to secured loans, such as mortgages or SME business loans, lenders will often require some form of security before releasing funds. A legal charge is one common option, but it isn’t the only form of security a lender may consider. Depending on the lender’s policy and the nature of the loan, they may accept alternative forms of security over different assets, or they may consider other arrangements. Whether a legal charge is required (and what alternatives might be acceptable) is entirely determined by the lender. This is typically something a broker or lender would advise on directly. If you are presented with a legal charge, independent legal advice ensures you understand the implications before agreeing to it. ### Are You Required to Agree to a Legal Charge? Legal charges are not a requirement to obtain a business loan, but many lenders require this as part of limiting their lending risks. It’s also dependent on the type of loan you’re planning to apply for and your lender’s policy. For example, since unsecured personal loans are offered based on your income and credit score, you may not have to agree to a legal charge. However, when it comes to secured loans, such as mortgages or SME business loans, lenders will often require some form of security before releasing funds. A legal charge is one common option, but it isn’t the only form of security a lender may consider. Depending on the lender’s policy and the nature of the loan, they may accept alternative forms of security over different assets, or they may consider other arrangements. Whether a legal charge is required (and what alternatives might be acceptable) is entirely determined by the lender. This is typically something a broker or lender would advise on directly. If you are presented with a legal charge, independent legal advice ensures you understand the implications before agreeing to it. ### Who Requires It? - Securing a business loan with collateral, such as property or other assets - Commercial mortgages - Refinancing business debt - Directors offering personal property as security against loans - Agreements around asset financing - Bridging or development finance - Debenture over company assets ### Legal Charge Risks & Protections Every legal charge on a loan agreement carries with it significant risks. However, these usually come into effect only when you default on a repayment or in the worst-case scenario of bankruptcy. These are some of the legal charge risks you can expect - Forfeiture of secured assets due to repayment issues or insolvency - Mandatory lender consent for the sale or refinancing of property - Impacts financial flexibility and cash flows as it's tied to lender approvals However, borrowers also receive protections - Independent legal advice or business loan advice ensures you’re aware of your risks and liabilities - You’re protected from hidden or unfair terms and conditions - You’re well-informed about the clauses under which enforcement is triggered - You are released from your legal charge on full payment of the loan ## Independent Legal Advice for Business Loan Security Independent legal advice (ILA) may be required by lenders when legal charges on business loans are involved, but this depends on the lender’s own policy and documentation. Where ILA is requested, the solicitor providing the advice will ensure you have had the implications of the legal charge explained to you, including how enforcement could work in situations such as business insolvency. Our role is to give objective, unbiased advice on the legal charge or personal guarantee itself. Because this advice must remain independent, it cannot be given by a solicitor who is also acting for the lender, as this would create a conflict of interest and would not usually meet the lender’s requirements for independent advice. ### What you can expect from iLA When you come to iLA for advice on a legal charge, we’ll walk you through the details, ensuring that you have a practical understanding of: fas fa-check ### What a legal charge means for you: We’ll explain how a legal charge affects your property rights and what it grants the lender. fas fa-check ### Your obligations: Know exactly what’s required of you, from repayment terms to what triggers enforcement. fas fa-check ### The risks and consequences: We’ll break down potential scenarios that could put your property at risk and help you navigate these. fas fa-check ### Your next steps: We’ll advise on any protective measures you can take before signing, so you can move forward confidently. ### You really just want quick and easy ILA. But it’s also essential to make the best decision for your situation. ### How it works ### ? ? Our simple process ensured you get clear and transparent independent legal advice, quickly. At iLA, we provide specialist advice for property and finance, assuring you of streamlined service available fully online for your convenience. We carry out online video consultations and comply with all lender and solicitor requirements for legal charges. You can book your appointment online via our website or by telephone. We’re open 7 days a week, including weekends, to meet your most urgent ILA requirements. We’re committed to a fully transparent pricing model so that you can choose the right package based on your needs. Find out more about [how our process works](https://www.ila.co.uk/how-it-works/our-process) and [our fixed pricing plans](https://www.ila.co.uk/pricing). ### 1 ### Book your appointment ![Independent Legal Advice for Legal Charge](//iladvice.b-cdn.net/images/2024/11/13/arr1.png) ### 2 ### Get ready for your appointment ![Independent Legal Advice for Legal Charge](//iladvice.b-cdn.net/images/2024/11/13/arr2.png) ### 3 ### Get your legal advice ![Independent Legal Advice for Legal Charge](//iladvice.b-cdn.net/images/2024/11/13/arr3.png) ### 4 ### Sign and complete ### Transparent, Fixed Fee Legal Advice We believe in clear, fixed pricing so that you don’t have to worry about any hidden fees or charges. Our pricing is based on urgency, so that you have the flexibility to choose a pricing plan based on your requirements. Our fee plans are structured as Diamond, Gold, Silver and Bronze. You can learn more [here](https://www.ila.co.uk/pricing). ### Why Choose ![?](//iladvice.b-cdn.net/images/2024/11/06/ila-logo.webp) ### ? ![Independent Legal Advice for Legal Charge](//iladvice.b-cdn.net/images/2024/12/10/online-legal-advice-uk.webp) fas fa-quote-left Before you sign, you must fully understand what you’re agreeing to ### Here’s why clients across the UK trust us for legal charge advice: ### Specialist focus on ILA: Independent legal advice is all we do, so we bring deep expertise and efficiency to every appointment. ### Fast, flexible appointments: Need advice quickly? We’re available seven days a week, including weekends. ### Convenient online process: Everything happens online, so there’s no need for in-person visits or delays. ### Transparent pricing: Our fees are clear and fixed, with no hidden costs—what you see is what you pay. As one of the UK’s leading ILA firms specialising in property and finance ILA, we’re committed to ensuring you have a high-quality service from beginning to end. We also offer ILA on personal guarantees, bridging and development loans, third-party legal charges, deed of subordination, loan agreements, occupiers' consent and more. Our team of award-winning solicitors can deliver professional expertise quickly while maintaining privacy and adhering to the highest standards. ### FAQs ### Can I repay without early penalties? This largely depends on your loan agreement and the lender’s policy. Some lenders may charge an early redemption fee, while others allow for early repayment without any charges. ### What happens if I refinance next year? If you’ve paid your lender all your dues and they have released you from all financial obligations, including the legal charge, you can refinance the following year with a new lender. ### What business assets can be secured under a legal charge? Commercial property, intellectual property, vehicles, equipment, and other valuable properties owned by you or your business can all be secured under a legal charge. ### Can you negotiate the terms of your legal charge? Depending on how flexible your lender is with negotiation, you can modify and change certain terms and conditions of your legal charge. This can include fees, asset class, requirements for consent or circumstances under which enforcement can be triggered. ### What if you’re pressured to sign quickly? If you feel you’re being pressured, you’re advised to seek independent legal advice promptly, as signing in a hurry can expose you to serious financial and legal risks. ### Can I switch assets used for the legal charge? Yes, you can switch assets used for a legal charge by a deed of substitution; however, you’ll need your lender’s full consent and a written agreement to pursue this. ### Book Your Consultation or Call Today Understand your legal charge before you commit. A legal charge is a serious financial and legal commitment. But financing advice doesn’t have to be complicated. We’re here to guide you through the process quickly and efficiently. We’re regulated by the solicitors regulation authority (SRA), have a 5 star rating on trustpilot and were awarded the best specialist finance partner in 2024 by the Bridging & Commercial awards. Our co-founder, Anastasia Ttofis, has been consistently featured in leading legal publications and continues to make a difference with ILA. We’re here to assist you 7 days a week from 8 am to 8 pm. Call us on 020 4571 9207 today. Alternatively, if you have any questions about getting independent legal advice for legal charges, email us at [Book Your Legal Charge ILA Now](https://www.ila.co.uk/contact#ila-legal-contact)