Our solicitors provide independent legal advice for deeds of subordination where lenders require confirmation that an individual fully understands the legal implications of altering the priority of repayment between creditors.
A deed of subordination (sometimes referred to as a deed of postponement) is a legal document that changes the order in which lenders or creditors are repaid. By entering into this agreement, one party agrees that their claim will rank behind another lender, meaning the primary lender will be repaid first in the event of default or enforcement.
Because entering into a deed of subordination can significantly affect a party’s rights to recover funds, lenders and solicitors often require Independent Legal Advice (ILA) to ensure that the implications of the agreement are fully understood before it is signed.
Why Independent Legal Advice Is Required for a Deed of Subordination
Independent Legal Advice is required to ensure that the person entering into the deed fully understands the legal and financial consequences of subordinating their interest.
A solicitor must ensure that you:
- Understand how the priority of repayment is being changed
- Are aware that another lender will be repaid before you
- Understand the potential impact if the borrower defaults
- Are entering into the agreement freely and without pressure
This process helps ensure that the agreement is entered into with full understanding and reduces the risk of future disputes or challenges.
Once advice has been provided, the solicitor will issue the confirmation or certificate required by the lender or their solicitors.
Our Deed of Subordination Independent Legal Advice Service
Our solicitors regularly advise individuals and businesses who are entering into deeds of subordination as part of lending or refinancing arrangements.
During your appointment, we will:
- Review the deed of subordination and related documentation
- Explain the legal implications and risks in clear terms
- Confirm your understanding of how your rights are affected
- Answer any questions you may have before signing
Appointments are available in person at our office or remotely via secure video call (Zoom). Where transactions are urgent, we may also be able to offer same-day appointments to avoid delays.
Once the advice has been completed, we will issue the solicitor’s confirmation required by your lender or their solicitors.