How can I legally protect my loan money agreement?

When you are lending or borrowing money as a business, it can feel daunting and having the right protection is crucial.

A well-drafted loan agreement not only protects your interests and ensures smooth repayment, but can also avoid disputes down the line.

Our Associate Solicitor, Dashna Morarji-Sagoo, investigates.

What type of loan do I need?

There are many types of loans you can have, but generally loans fall into two categories – secured loans and unsecured loans.

A secured loan is secured by an asset, such as your home, car or any other valuable items and are usually granted over a period.

The lender can claim to possess or take control of the asset if there is a breach by the borrower on the terms of the lending, including failing to make payments when due.

An unsecured loan does not involve security and can be based on financial information or credit history and is usually payable on demand.

Regardless of the type, a professionally drafted loan template is essential to protect both parties.

Many lenders can make a simple mistake, which can lead to costly disputes or even losses, but with the right approach, we can help you legally enforce your loan.

Why does a loan agreement matter?

Skipping a formal party agreement could put you and your business at risk, so it is important to have a clear and constructed agreement between both sides.

The loan agreement will contain, amongst other provisions, clauses to cover the term of the loan, the repayment method and whether interest is to be charged.

It serves as legal proof in cases of disputes or late payments and it is required by HM Revenue and Customs (HMRC) to determine tax liability for both parties.

Without a written contract, the loan could even be treated as taxable income and you should ensure your finances are protected.

How can I legally protect myself?

When lending, always check that you are complying with the Consumer Credit Act 1974, which regulates credit agreements and protects borrowers.

A clear and comprehensive loan agreement is your best protection and we can help you start the process.

How can you make sure your loan is enforceable?

To make sure your loan is enforceable and valid, always clearly state the amount and the exact purpose of its use.

Overlooking the interest rate clause can cost you, so you must include the exact rate in per cent per annum, whether it is fixed or floating and how interest is calculated.

Clear repayment terms are a key step in creating your loan and setting up a repayment schedule is ideal.

This should include due dates for Enterprise Management Incentives (EMIs), the total number of payments and any late payment penalties.

Outlining what counts as an event of default and the lender’s rights can protect you from legal fees and we can help guide you on this.

What are the risks of my loan being incorrect?

In your loan agreement, consequences can result in recalling an entire loan, seizing security and taking legal action against the borrower.

It could be detrimental to the continuation of any business so a dispute resolution is important to help protect even the most precise loan templates.

Loans are a legal document and having both parties agree with valid signatures and a third-party present to witness can make your loan even more protected.

Following these steps will not only make sure your loan is secure but also protect you in the future against any risks or disputes.

If you need advice on how to draft a loan agreement, contact our banking and finance team.

Home improvements can be an exciting time, but when a tradesperson’s work does not meet your expectations, frustration can quickly follow.

Whether the job was done poorly, overcharged, unfinished or unsafe, it is important to know your rights.

Our Head of Construction and Engineering Law Department, Adam Davis, offers his legal tips on how to take action.

How can I protect my rights?

In the UK, your rights as a homeowner are protected under the Consumer Rights Act 2015 and the Supply of Goods and Services Act 1982.

These laws state that any tradesperson you hire must carry out work with reasonable care and skill, supply materials fit for purpose and install any goods correctly.

If they fail to meet these standards, they have breached their legal requirements and you are entitled to a solution.

You can request that the work be redone or fixed at no extra cost, or you could be entitled to the cost of rectifying any defects if the tradesperson does not do so, or a potential refund in part.

What are the common problems when dealing tradespeople?

Problems with tradespeople can range from poor workmanship, delays to unsafe or unfinished work.

Some of the most common incidents may include:

• Delays in completing the work
• Defects in the works
• Incorrect materials used
• Increased unforeseen costs
• Projects left uncompleted or in a state of disrepair

In such circumstances you have a right to have the problem fixed by the tradesperson if they are willing or if you wish them to do so, or claim damages from the tradesperson in having the issues fixed/ rectified.

What are the next steps if this happens to me?

If you are unhappy with the work, it is important to gather relevant paperwork such as quotes, contracts, receipts and any written correspondence.

Begin with contacting the tradesperson or company that arranged the work explaining the situation clearly and referencing your rights.

Give them a fair deadline to make repairs and follow up in writing on what you expect them to do.

If a resolution cannot be found then, you may have to resort to looking to bring a claim against the tradesperson.

This process may feel intimidating, but we can help you understand your rights and ensure you receive the fair treatment and quality workmanship you are entitled to.

How best to avoid this from happening to me?

The best way to seek to avoid disputes is to have a formal contract in place between you and the tradesperson, which clearly sets out the obligations and rights of each party.

Although it may not eliminate disputes entirely, it can help reduce the likelihood of them and offer you peace of mind when dealing with home improvements.

For further advice on protecting your homeowners’ rights, contact our Construction and Engineering Law team for expert advice.

The festive season is a time for celebration, but it also brings a sharp rise in drink driving incidents.

Every year, police forces across the UK increase roadside checks and December accounted for 18 per cent of the total breath tests in 2023.

With more people on the roads after office parties and family gatherings, it is important to know your legal rights if you are stopped or charged for drink-driving.

Our Road Traffic law expert, Jeremy Sirrell investigates.

What is the legal limit and offences?

In England, Wales and Northern Ireland it is illegal to drive a motor vehicle with more than 80 milligrams of alcohol per 100 millilitres of blood or 35 micrograms per 100 millilitres of breath.

A conviction can result in a minimum 12-month driving ban, an unlimited fine or even imprisonment in some serious cases.

What happens if you are stopped by the police?

Police can stop any vehicle at their discretion and if they suspect you have been drinking, they can request a roadside breath test.

Failing or refusing the test without a reasonable excuse, such as a medical condition, is a separate offence and can likely result in arrest.

If you fail the roadside test, you will taken to a police station for a more accurate evidential breath, blood and urine test, where the lower of the readings will determine if you are charged.

What are your rights at the police station?

Once you are detained, it is crucial to know that although you have the right to remain silent when being interviewed, doing so when being asked to provide a sample may amount to refusal to provide a specimen.

Equally, the Police and Criminal Evidence Act requires the police to offer you access to legal advice or contact a family member whilst you are in custody, but such rights do not allow you to delay the procedure whilst accessing them.

However, driving prosecutions can fail if evidence is mishandled due to incorrect breathalyser readings, faulty equipment, incomplete or missing records or a lack of clear evidence that you were driving the vehicle.

Our specialist solicitors can carefully examine the prosecution’s evidence to uncover any procedural mistakes or weaknesses in the case.

We assess that blood, breath or urine tests were carried out with full consent, accuracy and reliability, as any errors could make it inadmissible in court.

Are there any mitigating factors against my sentence?

Even if you are convicted, the court can consider mitigating factors when deciding your sentence. These can include:

• Having no previous convictions
• Demonstrating genuine remorse
• Driving is an element of your job and could result in a loss of earnings
• Medical or emergency reasons for driving

You may also be offered a Drink Drive Rehabilitation Course (DDRC), which can reduce the length of your ban by up to 25 per cent.

How to seek help in the holidays?

During the holidays, remember that even the smallest amounts of alcohol, including in food or festive desserts, can affect breathalyser results.

By understanding the factors and procedures in these situations, you can be prepared for these situations and the process.

Our professional team can guide you in making sure your rights are protected and your case is managed fairly, allowing you to celebrate your Christmas safely.

If you want advice on how to handle roadside checks, contact our expert Road Traffic team for guidance.

As one in three UK adults relies on future inheritance to stay financially dependent and out of debt, it is crucial to plan for your future finances.

However, with rising probate delays, family disputes and complex intestacy rules, fears could arise that your inheritance could arrive later than expected or not at all.

Our Private Client Associate Solicitor, Louise Welch, explains the importance of carefully planning your Will.

Why are probate delays and disputes rising?

According to figures from the Ministry of Justice, probate disputes reaching court have increased by 37 per cent in the past decade.

With cases taking longer than a year to settle, administrative backlogs and rising contention over Wills mean that families are waiting longer for funds.

Level’s Group’s recent report in 2025 highlights that more than half of UK adults expect to receive an inheritance in the next 20 years and 38 per cent are willing to contest a Will if they feel unfairly treated.

With emotions and finances intertwined, careful estate planning has never been more important and we can help support you.

What are the causes of probate delays?

There are several factors that can contribute to long probate timelines, which could be as simple as a lack of a valid or up-to-date will.

This could result in legal scrutiny and months of correction, so it is important to make sure all paperwork is complete and your financial records are safely organised.

If your Will is more complex and includes estates, such as foreign assets or business interests, you can consult our legal advice on how different legal systems and tax implications will affect these.

What is the cost of dying without a will?

One of the biggest risks families face is when a member dies without a valid Will and assets are distributed under a strict legal hierarchy.

These may not reflect your personal wishes and can leave unmarried partners, stepchildren and close friends excluded entirely and financially vulnerable.

It is important to make sure your family are protected in your Will and to avoid legal disputes that can cost time and money, we can help you keep your affairs in order.

How can you protect your estate?

Proactive estate planning can help reduce stress for your loved ones and carry out your wishes efficiently.

Our team can help you create a clear and comprehensive Will that is legally sound, as well as helping you keep it updated.

Reviewing your Will after major life events, such as the birth of children, is essential and it is important to know that if you do get married, your existing Will becomes void.

Unless you have a Will in contemplation of your marriage, updating your Will helps avoid your estate being distributed according to the Government’s rules of intestacy if you die.

Speaking clearly to your family and friends about your wishes can prevent disputes and if you feel unsure, seek our professional advice.

Why should you secure your life?

Estate planning is for anyone who wishes to protect what they have built and who they care for in their life.

With Inheritance Tax changes approaching, now is the time to take action and we are here to help.

The right plan can protect your wealth, minimise tax and give you peace of mind that your family and friends will be supported with the pain of probate delays.

If you seek support in establishing your Will and ensuring that your estate planning is clear, reach out to our team for guidance.

As relationships evolve, more couples are choosing to live together and cohabitate over marriage.

The social shift of cohabitating relationships is becoming more mainstream, yet laws still treat marriage as the gold standard.

When marriage and civil partnership rates have dropped, is it time for family law to start to reflect modern relationships?

Our Family Lae expert, Karen Bishop, investigates.

Why is family law calling for a change?

According to a report by the Office for National Statistics (ONS), 49.5 per cent of people aged 16 and over were married or in a civil partnership in 2024, which has dropped from 51.5 per cent in the last decade.

Family law experts and organisations have been urging for reform to reflect how people actually live today.

The Law Commission first proposed an opt-out cohabitation scheme in 2007, but successive governments have failed to act.

With a long-awaited step to fairness, the Government announced plans, following the 2024 manifesto pledge, to consult on cohabitation reform.

What are your rights if you cohabitate?

Despite the fall in legal unions, most adults still live together as part of a couple.

In 2024, the ONS estimated that 60.5 per cent of adults were living with a partner, whether that was married, in a civil partnership or cohabiting.

Cohabitation was once seen as the step before marriage but now it has become the norm.

This social shift has left a growing number of people exposed to legal vulnerability.

With common law marriage not existing in England or Wales, couples who live together have no automatic rights if they separate or one partner dies.

Without legal recognition, a partner who hasn’t contributed financially to property or assets may be left without a home or financial support.

How can reform reflect modern living?

With cohabitation rapidly growing more popular, the government is exploring ways to give unmarried couples fairer rights and financial protection.

Some potential reforms could include:

• An op-out cohabitation scheme that would grant cohabiting couples certain legal rights by default.
• Fairer property division laws that recognise both financial and non-financial contributions.
• Financial support after separation that could prevent financial strain on the lower-earning or non-earning partner.

Protecting cohabitating couples ensures that all families, regardless of marital status, are treated with fairness and dignity.

The Government consultation offers an opportunity to modernise family law for a society where commitment takes any form.

We can help guide you on the current legal gaps and ensure that you understand your legal rights.

If you need advice on your legal protection as a cohabitating couple, contact our team for help.