How Fast ILA Advised Two Company Directors on Unlimited Personal Guarantees for a Commercial Mortgage
Two company directors were securing buy-to-let finance through their limited company for the purchase of an investment property. The lender—MTF (LE) Limited—required each director to sign an unlimited personal guarantee and indemnity as a condition of the mortgage offer.
Although the borrowing was being made in the company’s name, the lender insisted that each director obtain independent legal advice (ILA) to confirm they understood the serious legal and financial risks of becoming personally liable for a 25-year commercial loan.
Fast ILA advised, verified, and certified both personal guarantees within 24 hours—protecting the clients’ legal position and ensuring their transaction could proceed on schedule.
Why Independent Legal Advice Is Required for Personal Guarantees
Lenders often require directors or shareholders to give personal guarantees when lending to a limited company. These guarantees allow the lender to pursue the individual personally if the company fails to repay the debt.
Independent legal advice is required to:
- Confirm the guarantor understands the legal consequences
- Prevent future claims of undue influence or misunderstanding
- Ensure the guarantee is legally binding and enforceable
Fast ILA provides this advice with speed, clarity, and lender-compliant certification—remotely and for a fixed fee.
The Loan and Guarantee Structure
- Loan Amount: £157,530.80
- Lender: MTF (LE) Limited
- Borrower: Limited company (SPV)
- Term: 25 years, interest-only
- Interest:
- Fixed 4.99% for 5 years
- Then BoE Base Rate + 5.00%
- Monthly Repayments:
- £655.07 (first 60 months)
- £1,214.30 thereafter
- Final payment: £1,344.30
- Security: First charge over a buy-to-let property
- Total repayment: £489,366.71 over full term
Each director was asked to sign a separate, unlimited personal guarantee, with joint and several liability and no financial cap.
What Fast ILA Delivered
We reviewed the full mortgage offer, personal guarantee documents, and lender conditions. Each director was advised in a private, solicitor-led video call. We explained:
- The nature and effect of a personal guarantee
- That the obligation was unlimited in amount and time
- That liability was joint and several (either party could be pursued for the full debt)
- That the lender could enforce without first suing the company or realising the property
- That personal assets—including their home, savings, or income—were exposed
- That the guarantee would survive even if they later resigned as directors
We confirmed their identity and understanding, and certified the lender’s ILA forms the same day.
Outcome
- Both clients received full independent legal advice
- Lender-compliant ILA certificates issued and returned within 24 hours
- No delay to the mortgage drawdown
- Clients understood and accepted the legal consequences
- Fixed-fee service at £120 + VAT per person, with no additional cost
Why Use Fast ILA for Personal Guarantee Advice?
We specialise in acting for directors, investors, and professionals who are:
- Signing personal guarantees for commercial or buy-to-let finance
- Providing indemnities to lenders for corporate borrowing
- Joining mortgages as non-owning borrowers or guarantors
Our service includes:
- Same-day remote appointments with regulated solicitors
- Fixed-fee pricing from £120 + VAT
- Full review and legal advice on your lender’s documentation
- Certification accepted by lenders including MTF, Shawbrook, InterBay, Aldermore, and more
Book Your ILA Appointment Today
If you’ve been asked to sign a personal guarantee—don’t sign until you’ve received proper advice.
Fast ILA will:
- Review your guarantee documents
- Explain the risks clearly
- Certify your compliance with lender requirements
To book your appointment, use the booking form on our website.
