Personal Guarantees in UK Real Estate Finance Transactions – Considerations for Lenders

Short summary

A UK High Court judgment in Bank of India v Firestone International highlights the defences personal guarantors can raise to contest liability, even when guarantees were willingly given. Nirav Modi, detained in London fighting extradition, raised multiple arguments including improper service of demand. The case reminds lenders that enforcing personal guarantees can trigger costly, time-consuming disputes regardless of merit.

• •UK High Court case shows personal guarantors can raise varied defences to block enforcement
• •Nirav Modi contested liability on grounds including improper service of demand
• •Lenders should expect potentially expensive disputes when calling personal guarantees

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