Lenders who have taken security over assets must ensure that, once all monies are repaid, any charges are correctly released at the end of the term. The borrower (charger) then has a legal right to redeem their security and recover full use of their property or other charged assets. For new lenders who take security, it is equally important that any existing security is released and documented correctly with appropriate protections.
We advise lenders and borrowers on security releases, negotiating to release security and liaising on documentation to ensure that the release is actioned with interested bodies, such as HM Land Registry/Companies House.
In dealing with a range of secured lending, we advise on complex and high-value transactions, taking account of legal rights alongside commercial interests.
Deeds of release
Deeds of release must be carefully drafted to ensure that no residual liabilities remain and that the refinanced assets are no longer subject to any existing charges. We regularly provide deeds of release in respect of all security e.g. debentures, legal charges, fixed charges, assignments, intercompany loans and personal/ corporate guarantees.
Release of security
Once a secured debt is repaid, the asset owner becomes entitled to have their asset released from the relevant charges and reassigned, removing any obligations or liabilities. We also draft deeds of partial release whereby some assets remain subject to a charge together with certain security obligations and liabilities.
Termination agreements
A carefully drafted termination agreement is essential when choosing to end a contract: it ensures that all contractual liabilities cease. We advise clients on their contractual termination rights and draft effective termination agreements, enabling them to exit the contract without further obligations.
