Loan Agreement

We draft loan agreements that can be secured over property or unsecured. The loans are most commonly used for the purchase of a property. For example parents investing money into their children's home and they want to get the money back at a future date.
We can either act for the borrower or the lender but we can't act for both. The process is:
  • 1
    Complete online Intentions Form
  • 2
    Proof of ID Scan an in date passport or driving licence
  • 3
    Proof of Address Scan 2 copies of your address within the last 3 months such as a utility/mobile phone invoice or bank statement
  • 4
    Agreement We draft the loan contract and send to you for your approval. This service is available at a Fixed Fee of £399 INC VAT, or £599 INC VAT for a commercial loan from a company. If you wish to add any additional clauses or tailor the deed then our solicitor can help and will agree an additional fee with you for doing this. We will charge extra for material changes to the original intentions. We will draft the agreement based on your intentions and offer one free revision. Should you look to change your intentions, supply incorrect details or you require a bespoke service then our solicitor will charge for this work on an hourly basis of £300 INC VAT.
  • 5
    Register Loan Agreement For an additional fee of £260 INC VAT we can register the agreement against the borrower's property for you. If there is already a first charge, such as a mortgage, then make sure to get lender consent to the second charge before instructing this service.
Please note: We only register Loan Agreements that have been drafted by Parachute Law. We cannot register loan agreements drafted by third parties.
If you are lending
money to someone else

Get a Private Loan Agreement
If you are borrowing
money from someone else

Get a Private Loan Agreement
If you are director of a company
lending money commercially

Get a Commercial Loan Agreement

Standard loan agreement or bespoke drafting?

We offer both fixed fee standard loan agreement templates that include the clauses required to allow the lender to enforce the debt at court. The cost of this loan agreement is kept lower and more competitive at £399 INC VAT. If however you'd prefer to tweak the agreement and have bespoke drafting we can help, however the cost for this drafting is charged at an hourly rate of £300 INC VAT as it often requires drafting from scratch with several versions as we tailor the agreement to meet your individual needs.

Do I need a personal loan agreement between friends?

While it can be awkward to ask a friend to sign a formal loan contract, it may be worth the discomfort to protect the friendship from any bitterness in the future.
It can be hard for the lender to get your money back without a legal agreement. Or, if you are the borrower, you might find that your friend suddenly demands their money back much earlier than the agreed repayment date.
Frequently Asked Questions