At Graphene Legal, we understand that securing commercial finance often requires directors and key individuals to provide personal guarantees. Our experienced solicitors specialise in providing prompt, comprehensive, and professional Independent Legal Advice (ILA) to individuals supporting corporate borrowing.
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Independent Legal Advice (ILA) for Personal Guarantees
When is Independent Legal Advice Required?
When a corporate entity applies for a bridging loan or a buy-to-let mortgage, lenders frequently require the company directors or shareholders to sign a personal guarantee. This guarantee acts as security for the lender, meaning that if the company defaults on the loan, the individual guarantor becomes personally liable for the debt.
To ensure that the guarantee is legally binding and enforceable, lenders will insist that the guarantor receives Independent Legal Advice before signing. This process ensures that you fully understand the nature, risks, and potential consequences of the documents you are signing, free from any undue influence.
Our ILA Services for Corporate Finance
We regularly advise clients on personal guarantees associated with:
- Bridging Loans: Short-term, high-value corporate finance.
- Buy-to-Let Mortgages: Corporate property investments and portfolio expansions.
- Commercial Mortgages: Long-term borrowing for business premises.
- Development Finance: Funding for property development projects.
What Does the Process Involve?
Our solicitors provide a streamlined and thorough service to ensure your transaction proceeds without unnecessary delays:
- Document Review: We will carefully review the loan facility agreement, the personal guarantee, and any related security documents provided by the lender.
- Consultation: We will arrange a meeting with you—either in person or via a secure video link, depending on the lender’s specific requirements—to discuss the documentation.
- Clear Advice: Our solicitors will explain your obligations, the financial risks involved, and the circumstances under which the lender could enforce the guarantee against your personal assets.
- Certification: Once you are fully informed and happy to proceed, we will witness your signature and sign the ILA certificate required by the lender to allow the loan to complete.
Why Choose Graphene Legal?
- Expertise: Our solicitors have extensive experience in commercial property finance and corporate lending structures.
- Efficiency: We understand that bridging and buy-to-let transactions often operate on strict deadlines. We act swiftly to provide the necessary advice and certification.
- Clarity: We cut through the legal jargon, providing straightforward advice so you know exactly where you stand.
Our Fees
Gross loans up to £1,000,000
| Requirement | Cost |
| Personal Guarantee Advice (in person) supplemented by explanatory advice letter. | £450 |
| Personal Guarantee Advice (on video call) supplemented by explanatory advice letter. | £400 |
| Fast track call and explanatory advice letter within 48 hours. | £200 supplement |
Gross loans £1,000,000 – £3,000,000
| Requirement | Cost |
| Personal Guarantee Advice (in person) supplemented by explanatory advice letter. | £550 |
| Personal Guarantee Advice (on video call) supplemented by explanatory advice letter. | £500 |
| Fast track call and explanatory advice letter within 48 hours. | £250 supplement |
Gross loans up to £4,000,000 +
| Requirement | Cost |
| Personal Guarantee Advice (in person) supplemented by explanatory advice letter. | £650 |
| Personal Guarantee Advice (on video call) supplemented by explanatory advice letter. | £600 |
| Fast track call and explanatory advice letter within 48 hours. | £300 supplement |
Discounted Rates for Multiple Directors
If multiple directors from the same borrowing company require Independent Legal Advice (ILA) for the same transaction, we are pleased to offer a reduced rate.
To help keep your corporate borrowing costs manageable, we apply a 25% discount to the total combined fee when advising more than one director.
Example:
If our standard fee for advising the first director (Director A) is £500, the standard cost for two directors would normally be £1,000. With our multiple-director discount applied, the total overall fee for advising both Director A and Director B would be reduced to £750.