Commercial Property, Risks and Ownership Structure

Are they your liabilities, loans or debts?

 

Yes, say you have your own liabilities and debts. Also assume you have guaranteed debt for borrowings through corporate trustee of trust.

If you then look to make a new borrowing for a property (either borrowing for yourself or guaranteeing a loan for a trustee) and the bank asks you what your liabilities, loans and debts are do you need to disclose your guarantee for borrowings through the corporate trustee?

 

You have to declare all debts including the ones in company names and where you have provided a personal guarantee. Logistically it also doesn't make sense to not disclose upfront as most likely the credit enquiry will appear on your file and the lender will question where or not you have proceeded with the debt.

Best to be upfront and just use a lender (although only 3 lenders do this) that does this within their policy.

 

A company is a separate legal person so its debts are not your debts. If they ask for your debts you don't have to declare related company debts.

If they ask what guarantees you are provided then these would need to be disclosed.