Personal guarantee for company mortgage

stephengulliver

Hello everyone, I’ve got a mortgage offer on my company’s property, but the lender wants a personal guarantee. I don’t really care about my potential liability, as I’ve got several mortgages in my own name and I think I understand the risk I’m taking and I wouldn’t borrow the money if I didn’t think the company & I could afford it. But I’ve been quoted £500+VAT for the legal advice before I sign, which I wasn’t expecting and has annoyed me, given that it’s on top of all the other fees I’m paying. Is about the usual amount? Is so, I’ll just have to suck it up and focus on the bigger picture. Thanks for reading!

ACG

Do you HAVE to use their solicitor?
There are not many solicitors who will do this with you, £500 is a little steep. Have you made any calls to local solicitors to see if they will do it and how much it will cost?

davidmcn

It's not unusual or unreasonable for a lender to require guarantors to seek independent legal advice. But the advice about the terrible things which might happen if you sign can probably be compressed into 5 minutes - so £500 seems OTT. I expect you can find it for a bit less if you shop around.