Lending and Mortgages

Our business lawyers advise on appropriate security structures to support loan arrangements and maximise recovery options if a loan is not repaid. This includes advice on the enforceability of security and whether any loan terms may be vulnerable to challenge as penalties.

While a first mortgage over real property is often preferred, this is not always available. We assist clients where alternative or additional forms of security are required, including:

• Subsequent mortgages
• General security agreements
• Mortgages over leasehold interests
• Guarantees

We also advise on the risks associated with each form of security so that parties understand the overall position before entering into a loan transaction.

Lenders should assess a borrower’s capacity to service the loan and identify what assets are available in the event of default. The terms of the loan are also critical in determining enforcement rights. For example, where a loan does not specify a repayment date, the limitation period for recovery may run from the date of the loan. If proceedings are not commenced, or the debt is not acknowledged within that period, the right to recover may be lost.