Surely I am not the only landlord worried about new EPC requirements?9:44 AM, 17th February 2021
About 2 weeks ago 125
After buying a number of properties in joint names, my wife and I formed a company in 2019 to continue to build our portfolio. Both mortgage companies that we have used have asked for us to sign personal guarantees and mandated that we receive independent legal advice before we sign the guarantee. I have been quoted over £550 to receive such advice.
Initially I thought signing the guarantee wouldn’t make us any worse off than if we bought the properties outside of a company. However, after the receiving legal advice I’m not so sure. I went into the first session thinking as long as we continued to pay the mortgage and behave professionally there was little to be concerned about. However, one gem we discovered in the small print was that the mortgage company can demand full repayment of the loan within 14 days without reason. You have substantially less protection obtaining a mortgage via a company versus doing it privately.
Presumably there are many landlords on this forum who have been asked to sign similar guarantees? Has anyone any pearls of wisdom to offer? They certainly make you feel uncomfortable… did you just close your eyes and sign? Does anyone know someone who has lost out for no fault of their own by signing such a document? I spoke to one solicitor recently who said you would only sign such a document if you had no other choice. Not inspiring advice.
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