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Personal or

Directors’ Guarantee

Providing our ILA expertise when
you need it most

  • Friendly, impartial service
  • No hidden charges
  • Straight-talking and jargon-free advice
  • Free initial consultation

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    Quick, efficient and friendly.

    Independent Legal Advice for a joint mortgage , sole proprietor purchase. Quick efficient and friendly and reasonably priced.

    - Louise


    Oakwood Solicitors have been amazing. Very prompt and helpful; can’t fault them at all.

    - Client

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    The experts in Independent Legal Advice

    Independent Legal Advice (ILA) is a signed document to confirm that you have received legal advice in relation to a particular matter. The advice must be taken from an independent alternate solicitor or Chartered Legal Executive who is not involved in the original proceedings.

    What is a Personal or Directors’ Guarantee?

    A Personal or Directors’ guarantee is where a company director personally promised or pledges to repay any debt of the business if they are unable to meet the responsibility. They would, therefore, have to use their own personal wealth to cover any missing debts.

    When should Independent Legal Advice be taken?

    Examples of when Independent Legal Advice should be taken:

    • Company credit card
    • Mortgage
    • Loan
    • Overdraft facilities
    • Lease of premises
    • Commercial contract
    • VAT/Corporation Tax or other Tax facilities
    • Business equipment

    What does it involve?

    A limited company is a separate entity to that of the Directors. As a Director, you are not personally responsible for any debts of the company. However, on the other side, it means that some companies will not provide you with credit cards, etc without the personal responsibility of the Directors.

    Therefore, many lenders will want the added security that their money will be repaid. To do this however they will require a solicitor to give independent legal advice to ensure that the Director has the full knowledge of what they are effectively “signing up for” and the consequences should the company not be able to service that debt.


    It may be that a Director is asking to give a guarantee for:

    • A set amount of money
    • Future obligations
    • Current or existing obligations

    A Director is usually aware of the current situation of the company and may realise that without their guarantee that the company may not be able to progress or obtain a loan to help their financial situation. They may therefore not feel that they need an ILA. The lender, however, will require the guarantee to ensure that any repayments can be enforceable against them.

    It is important therefore to ensure that you sit and listen carefully to the independent solicitor and let them explain the terms of the agreement before you proceed to sign.

    Frequently Asked Questions

    How much will it cost me?

    Quotes for this service are based on the documentation in question – please do not hesitate to contact a member of our team for more information.

    Why use Oakwood Solicitors Ltd?

    We know that when a lender asks you to sign paperwork that could mean that you put your savings, house or other monetary items on the line that it can be very daunting. You could be guarantying to pay a large debt back that could have severe knock-on effects for your personal life.

    We want to make sure that it is explained to you in a fully concise manner before you sign the paperwork.


    We need to do the following to accomplish this for you:

    • Meet in a face to face meeting or discuss via Skype
    • No other party should be present
    • Explain the full implications of the paperwork that you are signing and be aware that you could be potentially liable for large sums of money
    • Once you are satisfied with the paperwork then we would ask you to sign it
    • The paperwork would then be returned to the relevant lender
    What do I do now?

    All you need to do is contact our team at Oakwood Solicitors Ltd, and we will do all we can to make proceedings as painless as possible:

    Danielle Lightfoot
    Danielle Lightfoot- Solicitor and Head of Department

    Danielle Lightfoot is a Director and our Head of the Financial Litigation Department. Danielle joined the firm as a Paralegal in 2011 and qualified as a solicitor in October 2014. She has acquired extensive experience in high value, complex litigation traversing numerous practice areas. Danielle is a specialist in financial miss-selling matters, with a particular interest in Pensions and Investments.

    Danielle assisted in setting up the Finance Litigation Department. She took over as Head of the Department in 2017 and since then the firm has established a reputation as one of the leading law firms specialising in financial mis-selling claims.

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