Self-builders who have secured a personal guarantee-backed loan can now protect their assets with personal guarantee insurance from Purbeck
Self-builders, as well as property developers, are often required to provide additional security to the lender by signing a Personal Guarantee.
Insurance provides protection for self-builders if the development fails
The insurance can be used in cases where the self-builder has created a limited company structure for their self-build project. If the development fails the lender can seek recoveries from the Guarantors personally.
Todd Davison, MD of Purbeck PGI said: “It can often be the case that self-builders create a limited company structure to manage the finances of their building project and create some protection around their personal finances.
Settle up to 80% of the debt
“However, that can all be for nothing if they are asked to sign a personal guarantee as a condition of funding. We have therefore developed a solution for self-builders as well as property developers to protect their assets should their building project fail.
“Personal Guarantee Insurance will settle up to 80% of the debt, rather than the individual’s current home, savings, or other assets.”