In the current climate with companies, partnerships and individuals seeking additional resources from their banks and finance companies, they are finding they are being met with a request for security.
Many applying in an individual capacity often find their spouse, partner or another occupant of the property in which they reside have to be involved.
Many of the difficulties encountered in past cases, stem from serious or alleged deficiencies in the quality of legal advice given to such clients.
In almost all cases, the Bank / Finance Company will insist that each party is separately advised.
If you find yourself in this situation, you will need an experienced ,established Solicitor to provide positive advice as to your rights and liabilities. A Bank will need to rely on the solicitor’s involvement to counter any suggestion of undue influence or that the parties did not understand the factual implications of the proposed transaction.
These matters are known as Guarantee Appointments or Personal Guarantees.
The practicalities are that the papers are passed to the Solicitor by a Bank at the parties request who then has to obtain instructions from the client, be it individual, partnership or limited company that the party wishes them to act.
The formal advice will have to be given face to face, in non-technical language, stressing its importance. Security is at stake here, often the family home.
The nature of the documents have to be explained together with pointing out the seriousness of the risks involved.
Unfortunately, the Bank / Finance Company will often make this a pre-requisite of the loan.
Should you find yourself in this position, we have the capacity to assist at relatively short notice. We are able to undertake such appointments even in this current climate via Skype or some other form of technology.
Appointments can take up to an hour as they are not a technicality or just the witnessing of a signature. Once work is undertaken with the client there is often a mountain of paperwork to compete and return to the bank/finance house.
All are undertaken on a fixed fee basis dependent upon the amount of assurance, number of parties and number of securities required as Banks often require cross-guarantees, not only for the company but individually, partnerships, spouses, partners and often from other parties as well.