Etridge-compliant independent legal advice: lender and solicitor checklists for third‑party security and guarantees, undue influence and Confirmation requirements
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Checklists
Undue influence
Where a person gives security to support a third-party borrower, a presumption of undue influence may arise in particular situations and, in certain circumstances, be assumed—for details on when this presumption is engaged, see Practice Note: Taking a guarantee or third party security from an individual—undue influence.
After the House of Lords ruling in Royal Bank of Scotland v Etridge (No 2), the Law Society issued guidance for solicitors advising security providers to protect themselves from negligence claims. The judgment itself also explained the means by which a lender may protect itself from third-party security being set aside in circumstances where there is potentially undue influence.
Checklist for a lender taking third-party security from an individual
To rebut the presumption of undue influence (see above), a lender must be able to demonstrate that the security provider understood the nature of the transaction and chose to grant the security on an informed basis. In order to do this, whenever the relationship between the debtor and the security provider is non-commercial, the lender should comply with the following checklist...
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Web page updated on 20/05/2026
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Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...
I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...
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