Personal Guarantee Solicitor Fees (BTL LTD Co)

Pricy147

Hi,

We are getting a mortgage for our Limited Company to purchase a house. One of the stipulations is that all directors offer a personal guarantee to the loan. This requires a witnessed deed, and signed legal advise form.

We are literally getting quotes that are half the cost of the entire conveyancing to undertake these simple activities. We are aware of what personal liability means, but would potentially have to go through this process for every single house purchase!

Anyone been through this - found a cheap solicitor or body that can perform this function?

Thanks!

silvercar

Witnessing a deed should be cheap, around £20. After all they are only witnessing your signature, not giving any undertaking.

Does the legal advice form require witnessing? Seems odd that you have to have witnessed a form saying you understand you should take your own legal advice.

[Deleted User]

I presume the solicitors also need to sign a form to say they have given legal advise to their client about what they were entering in to?

If so then i dont have any solicitors in my town who offer it. They describe it as high risk/ low fee transaction so they dont do it unless they have a longstanding relationship.

I had a firm for a while that could do it for about £200 but it had to be face to face. I also had one that did it over skype but you had to pan the camera to show you were in the room alone. Its a strange transaction.

davidmcn

If nothing else, you should expect to get a discount if you become a regular customer, but I doubt there is a cunning cheap way of getting through the first transaction. You'll just need to shop around and hope you find a backstreet solicitor willing to do a good deal.

Pricy147

thanks - yeh its to witness our signatures, AND provide the legal advice. The former is cheap - even as low as £5 plus VAT. The advice is costly - when its completely obvious what you are entering into - complete cash cow that has to be repeated with every property purchase!!!!

Thrugelmir

Solicitors time is expensive. That's business. Build a relationship with a sizable firm and obtain better rates by placing all your legal work through them.