We provide expert advice on personal guarantees, explaining the implications clearly so you can decide if this commitment is right for you.
Personal guarantees are often requested when a loan is made to a company or another individual, requiring an individual to offer additional security in case the borrower cannot meet its obligations. This is common in business loans but also applies when buy-to-let properties are owned through a company structure. Many people don’t realise this until late in the process, which can be stressful without expert support.
At Pinney Talfourd, we understand the complexities around personal guarantees and promise to guide you through them with clarity and care. Our team works quickly to provide the necessary legal advice and certification, often at short notice.
We pride ourselves on explaining the law simply, without assuming any prior knowledge, so you fully understand the risks and benefits. Our advice helps you weigh your options and make confident decisions that protect your interests.
Our fixed fee pricing means you won’t face unexpected costs, and if there are multiple guarantors involved with similar agreements, we offer discounted rates to ease the burden on each individual.
Pinney Talfourd is proud to be recognised for our approachable yet authoritative legal guidance. Our commitment to building trusted, long-term relationships ensures you feel supported every step of the way – from first advice to final sign-off.
Clear, jargon-free advice
We break down complex legal terms into plain English, making the process easy to understand, so you feel confident in your choices.
Fast, reliable service
We’re used to handling urgent requests and provide timely, efficient advice without compromising on care or detail.
Fixed fee transparency
Our competitive fixed fees mean no hidden costs, helping you manage your finances with certainty.
Experienced in diverse lending situations
From traditional lenders to challenger banks and private individuals, we’re familiar with the full spectrum of guarantee arrangements.
Discounts for multiple guarantors
When more than one person is involved, we may offer reduced fees to ensure fair pricing for all parties.
A record of your advice you can rely on
Following your meeting, we provide a written confirmation of the advice given. This protects you if questions are ever raised about the nature of the advice received and gives you a clear record to refer back to.
Exceptional service
Our firm’s standing in Legal 500 reflects our dedication to delivering exceptional, client-centred legal services.
Long-term partnership and support
We don’t just advise you now – we’re here to support you through all life and business changes, building relationships that last.
Understanding personal guarantees – what you need to know before committing
A personal guarantee is a legally binding contract that means you’ll be personally liable to repay a loan if the company or borrower cannot. We help you understand what this means in practice, the potential risks, and how it might affect your finances and future decisions.
Many find themselves facing a personal guarantee request unexpectedly, especially with property investments held in company names. Our role is to give you clear information quickly, so you’re never left uncertain or unprepared.
We also consider each client’s unique situation, ensuring our advice reflects your personal and business circumstances, not just generic information. Our thorough approach means you fully understand your obligations and your options.
At Pinney Talfourd, we take pride in working strategically with you – aligning our expertise to your goals – so every step feels like a collaborative effort. Our goal is to provide not only expert advice but also the reassurance and peace of mind that comes from truly understanding your choices.
Personal guarantees FAQs
We understand you might be looking for answers, so we’ve compiled a list of frequently asked questions to help get you started.
A personal guarantee is a legally binding agreement between a finance lender and an individual which states that the individual will be personally liable for repaying a loan taken out by another, associated party, if the borrower defaults or becomes insolvent, or otherwise fails to honour the debt.
Lenders providing loans to companies usually request personal guarantees. This includes mortgage companies, challenger banks, specialist intermediaries, and sometimes private individuals.
You are under no legal obligation to sign a personal guarantee. However, refusing may mean the lender declines to proceed with the loan, which could affect the transaction you are involved in. Our role is to make sure you fully understand what you are signing before you commit – not simply to witness your signature.
We offer competitive fixed fees for this service. If there are multiple guarantors on similar agreements, we may offer discounted rates per person.
We’ll help you understand the implications and explore your options. Our role is to support you in making informed decisions, including when a guarantee may not be the best choice.
Our team of experts
Alexandria (Lexie) Jacobs
Senior Associate
Anica Holderness
Partner
Kelly Blackman
Associate
Nicola Acklam
Senior Associate
Paul Berry
Partner
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Your key contact
You can contact us now to book an initial consultation. Or for more information please contact Paul Berry on the details below.
Paul Berry
Partner