Lenders will normally want security for any lending they make whether to individuals or businesses. This can range from guarantees to charges, mortgages and in the case of companies, debentures. The security will often be taken over land, whether freehold or leasehold, but in a commercial context can be over fixtures, fittings, equipment, machinery and intellectual property rights like patents and designs. Usually the security will be heavily weighted in favour of the lender and in some cases may prejudice the flexibility of the borrower to run his business.

Commercial projects will often require financing from more than one lender and this will involve multiple charge forms and other security documents such as deeds of priority or postponement.

For advice on Mortgages and Security matters please contact:

Glyn Evans on 01934 637911 e-mail evans@powellslaw.com or
Stephen Soper on 01934 637915 e-mail soper@powellslaw.com.

See also our Shops & Offices, Agricultural and Pubs, Clubs, Hotels & Restaurants fact sheets (PDF).