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Consent Letter For Loan Guarantor for the United Kingdom

Consent Letter For Loan Guarantor Template for England and Wales

A Consent Letter for Loan Guarantor is a formal document used in England and Wales that confirms a guarantor's understanding and agreement to act as security for a loan. The document adheres to English law requirements, particularly the Statute of Frauds 1677 and relevant consumer protection legislation. It serves as written evidence of the guarantor's informed consent and understanding of their obligations, risks, and responsibilities in guaranteeing the loan.

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What is a Consent Letter For Loan Guarantor?

The Consent Letter for Loan Guarantor is a crucial document in English and Welsh lending practices, used when a third party agrees to guarantee a loan. This document is essential for protecting both the lender and guarantor by clearly documenting the guarantor's informed consent. It typically includes acknowledgment of the loan terms, confirmation of independent legal advice, and understanding of the potential risks and obligations. The letter ensures compliance with legal requirements and provides evidence of the guarantor's voluntary commitment to the guarantee arrangement.

What sections should be included in a Consent Letter For Loan Guarantor?

1. Guarantor Details: Full legal name, address, and contact information of the guarantor

2. Loan Reference: Details of the loan being guaranteed including amount, terms, and borrower information

3. Consent Statement: Clear statement of guarantor's consent and understanding of obligations

4. Acknowledgment of Rights: Statement confirming guarantor understands their rights and responsibilities

5. Independent Legal Advice: Confirmation whether independent legal advice has been received

What sections are optional to include in a Consent Letter For Loan Guarantor?

1. Spouse/Partner Consent: Required when guarantor's property rights may affect spouse/partner

2. Asset Declaration: When specific assets are being used as security

3. Credit Check Authorization: When lender requires permission to conduct credit checks

What schedules should be included in a Consent Letter For Loan Guarantor?

1. Loan Agreement Summary: Summary of key terms of the main loan agreement

2. Legal Advice Certificate: If independent legal advice has been obtained, certificate from advisor

3. Identity Verification: Copies of identification documents for anti-money laundering purposes

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

England and Wales

Publisher

Genie AI

Document Type

Guarantee Agreement

Sector

Banking

Cost

Free to use

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