Layna Thompson – I instructed Layna for selling my property and purchasing another. I have nothing but praise for her by the way this all has been handled from start to nearly finished. I have been kept informed all along the way.And would highly recommend Palmers.
Jamie, ReviewSolicitors
Farah Mahfooz – Farah has been amazing for me. In possibly the hardest time of my life in fighting for access to my children. Farah has first shown kindness, support and guidance. Farah has been professional and her knowledge got me the best outcome. I can’t recommend Farah highly enough.
Wendy, ReviewSolicitors
Brooke Barns – highly recommended. I have used Brooke for
Many private house purchases and sales and also through a Ltd company, every time Brooke handles everything with ease, she is exceptionally efficient and extremely professional.
Jeanette, Review Solicitors
Marissa McKenzie – Marissa was very kind, helpful and professional while dealing with my LPA. I found it very daunting but with Marissa’s guidance the task was finally completed. The descriptions I did not circle were because it was my fault there were delays as I had health issues and needed to talk to my sons. One other was N/A.
Marissa was very patient and explained things to me. A lovely young lady.
Mr A, Essex
Lisa Judd – Lisa provided calm and reassuring assistance during what was a difficult and unknown period relating to the cessation of my employment. Her experience and skill helped to negotiate a much more favourable outcome for me for which I am very grateful.
How can security against a loan be released?
When you take out a commercial loan, you may have to put up some assets as security against the loan in case there is a default on the loan.
This gives a lender the right to claim the asset and sell it to recover what they have lent to you.
However, in some situations, you may seek to release the security and gain full control over your asset again.
When would security be released?
Security on a loan may be released in a number of circumstances, including:
- Repayment – If you have repaid the loan, then you have the right to seek release of your asset, provided you have satisfied all other conditions.
- Refinancing – You may have the option to refinance the loan, which may adjust the collateral needed.
- Substitution – In some cases, the lender will accept a substitute security if both parties agree, although this is less common.
The most common scenario is that security is released once you have satisfied all conditions relating to your loan, including full repayment with any relevant interest and costs.
How do I release my security?
This will depend on the type of security, but generally you will require some signed documents, such as Form DS1 or a deed of release, from the person to whom you have granted security.
A deed of release does what it says on the tin – releases you from your legal commitment to provide security to your lender once the loan has been repaid.
Form DS1 may be used to release you from security on a property, which will need to be submitted to HM Land Registry.
If your company has provided the security, any deeds may need to be submitted to Companies House.
If this is straightforward and the lender cooperates, the cost for this is likely to be in the region of £600 to £900 (plus VAT and disbursements) as a minimum.
In more complex circumstances, costs can rise quickly, so it is important that you seek advice from an expert when seeking to release security on a loan.
For advice on drafting and signing commercial loan agreements, please contact Dashna at DashnaMorarji-Sagoo@palmerslaw.co.uk or by calling 07903 631780.