Lending & Securitisation

A debenture typically creates fixed charges over specific assets (property, plant, book debts under the lender's control) and a floating charge over everything else, converting to a fixed charge on default. Add a legal charge over any freehold or leasehold property and personal guarantees from the directors, and the lender is well covered.

Because under section 859A of the Companies Act 2006 an unregistered charge is void against a liquidator, administrator and other creditors — the lender becomes unsecured precisely when security matters most. Late registration needs a court order, so the deadline belongs in the completion plan.

Where a guarantee is given by someone who isn't a commercial party — a spouse, a family member, a director without a real stake — the lender should insist on independent legal advice, or risk the guarantee being set aside for undue influence. We provide that advice, and we draft the certificates lenders rely on.