Legal Practice Notes

Lexcel is the Law Society’s practice management standard. Although not mandatory, Lexcel accreditation can assist firms aiming for accreditation under the Conveyancing Quality Scheme or the Legal Service Board’s Specialist Quality Mark. This Practice Note explains how to apply for, and get ready for, a Lexcel assessment. The Lexcel standard From November 2018, firms are assessed against Lexcel v6.1. The standard is divided into seven areas: Structures and strategy Financial management Information management People management Risk management Client care File and case management To secure accreditation, firms must show through an independent assessment that the standard is fully embedded within their structures, policies and procedures. Accredited firms are then reviewed each year to confirm ongoing compliance. Different types of assessment There are four types of assessments: initial assessment year 1 annual maintenance visit ( AMV) year 2 AMV full...

Lexcel represents the Law Society’s benchmark for practice management. Although not mandatory, Lexcel accreditation can support firms aiming to secure accreditation under the Conveyancing Quality Scheme or the Legal Service Board's Specialist Quality Mark. Its recognition can nevertheless be advantageous to prospective applicants for those schemes. This Practice Note explains what to expect from the assessment itself. For advice on preparing for the assessment, see Practice Note: Lexcel—pre-assessment. Obtain and collate chosen files for review The assessor will notify you beforehand—usually in the timetable section of the assessment plan—of their intended arrival time on the first day, commonly late morning or early afternoon. However, they will very likely email you early on the morning of your assessment with a list of fee earner files they wish to examine, and you will be expected to gather and collate those files well in advance of their...

Lexcel is the Law Society’s benchmark for practice management. Accreditation is optional, yet Lexcel status can assist firms seeking recognition under the Conveyancing Quality Scheme or the Legal Service Board's Specialist Quality Mark. This Practice Note explains every step of the post-assessment pathway. Processing final report Soon after your assessment (typically two to three days), the assessor will send you the final report by email. It will set out any minor and/or major non-compliances, highlight areas for improvement, and note examples of good practice. A duplicate of the report will be forwarded to the Law Society panel......

Term sheets in leveraged finance transactions Leveraged finance term sheets are typically heavily negotiated and capture much of the detail that will later appear in the full suite of finance documents. In this way, they contrast with term sheets for general purpose lending, which are usually more concise. When appended to a signed mandate letter and shown to a seller, such term sheets are treated as evidence of a buyer’s capacity to progress with the acquisition. For wider guidance on term sheets, including when they might have binding effect, see Practice Note: Term sheets in lending transactions. On their own, term sheets are not generally regarded as ‘fundable’. Put differently, additional documentation is required before any drawing can occur. This may involve the complete documentation package or an Interim loan agreement. This Practice Note provides an introductory overview of term sheets in leveraged finance deals and...

What are incremental facilities? An incremental facility is a provision in a credit agreement that, once certain pre-agreed conditions are met, gives a borrower the latitude to take on further, or enlarged, debt commitments. Those additional commitments will usually and ordinarily enjoy guarantees and security on the same footing as the existing facilities. Such arrangements are commonly nicknamed “accordion” facilities because the overall commitments under the credit agreement expand when incremental debt is raised. Typical deal structure—where/when are they used Flexibility for incremental debt is a familiar element of sponsor-backed transactions in both the large-cap and mid-cap space. The Loan Market Association’s leveraged finance form of loan agreement (the LMA Credit Document) now provides optional drafting to include this feature within the form. In mid-cap deals, the expectation is generally confined to pari passu ranking senior term incremental facilities, which also sit alongside the...

In most leveraged buy-outs, funding combines equity and debt. Deployment of proceeds varies by deal, but finance is typically directed to: buying the target business—usually by making a direct payment to the seller meeting transaction costs and expenses, including advisers’ fees, and refinancing outstanding debt A transaction may instead aim to refinance existing liabilities or return capital to the sponsor without a full exit—known as a ‘leveraged recapitalisation’—rather than acquire a target (see Practice Note: What is acquisition finance?). This Practice Note considers: how investors inject equity into the group and the forms that equity may take the range of debt options, including senior facilities, mezzanine facilities, second lien facilities, PIK or payment in kind facilities, unitranche facilities, senior secured notes and subordinated notes, and the factors that influence the choice of funding...

This Practice Note outlines elements of how letting and estate agents are regulated that could matter to consumers. It addresses duties to supply information, unfair terms in contracts, consumer safeguards against unfair trading, business protection from misleading marketing rules, the redress scheme, and codes of practice alongside practice statements. It also reflects obligations and responsibilities created by the Renters’ Rights Act 2025 ( RRA 2025). Estate agents Estate Agents Act 1979 The legal definition of ‘estate agency work’ provides that: a person is regulated as an ‘estate agent’ under the Estate Agents Act 1979 ( EAA 1979) where, in the course of a business, they act on instructions from a seller or buyer of an interest in land, either to introduce their client to a buyer or seller, or to secure the disposal or acquisition of that interest in land once a buyer or seller has been...

For any construction scheme that relies on external finance, the funder will usually instruct its own team of solicitors to prepare and/or settle the necessary legal paperwork. Among the many agreements to be finalised are the project development and building documents. The funder will also appoint a specialist construction solicitor to carefully scrutinise those construction documents and to negotiate with the borrower’s lawyer wherever it believes amendments are needed. That solicitor will expect the construction suite to safeguard the interests of both the borrower and the lender, in the immediate term (while the works are carried out) and over the longer term (once the works are complete). This Practice Note identifies the construction documents a lender’s lawyer will commonly examine and the issues that typically matter from the lender’s viewpoint. In this Practice Note, the expression borrower refers to the party that is taking funds from the...

Commercial lending transactions Commercial finance deals typically provide funding to sizeable corporate bodies, yet there are occasions when an individual is also part of the arrangement. For instance, a person may give a guarantee and/or offer security to support a business facility. This Practice Note explores the principal issues that may emerge when interacting with individuals within a commercial finance context. It reviews the kinds of steps an individual might take in such transactions and examines the individual’s capacity and authority when carrying them out. It also highlights other specific considerations when dealing with a private person in a commercial financing, including the usual representations and warranties the individual is expected to give in the finance documents, undue influence, and executing ‘legal’ assignments via powers of attorney. Please note, this Practice Note does not address scenarios where the individual concerned is the...

This Practice Note covers the main areas involved in taking security over a superyacht and highlights the issues which set it apart from mainstream ship finance. For wider guidance on taking security over commercial vessels generally, see Practice Note: Shipping finance—security. Lenders typically structure collateral into three strands: charges over the superyacht itself; security over rights linked to the yacht; security over the beneficial owner’s other property. In addition, third parties may obtain security over a superyacht, whether arising by agreement or imposed by law, in the form of liens over it. This final category matters greatly to a lender, as some liens, in certain legal systems, can outrank the lender’s collateral. The type and timing of the security package will also depend on whether the facility supports a new build or the purchase of a pre-owned...

This primer is aimed at lenders (and other creditors) and their legal advisers, setting out how to approach a potential debt restructuring. It highlights the merits of an informal, consensual solution versus formal proceedings; identifies key preparatory steps for lenders; and summarises the range of options across informal restructurings and formal processes. It also considers the enforcement of security, noting its relative disadvantages and the available procedures. As an introductory resource, it signposts more detailed materials on each topic. A Glossary of restructuring terms and jargon provides further explanations of commonly used and technical expressions in restructuring and insolvency. The guide addresses only processes involving domestic companies. Where a restructuring or enforcement features foreign companies or cross‑border elements, see: Cross border co‑operation in insolvency and restructuring—overview and the additional resources referenced there. Why a...

What are conditions precedent? In finance deals, conditions precedent ( CPs) are the requirements a borrower must satisfy: typically before it may submit a utilisation (drawdown) request; and before the lender is obliged to release the funds. They are set out in the facility agreement, which commonly requires each CP to be in a form and substance satisfactory to the lender. In real estate investment finance, property‑specific CPs aim to assure the lender that: it will obtain a first legal charge over the property; and the property is acceptable security for the loan. For more detail, see Practice Notes: Real estate finance—conditions precedent and the mechanics of drawdown in development facilities and Real estate finance—conditions precedent and the mechanics of drawdown in investment facilities. What are the usual property specific CPs? A satisfactory certificate of title or report on title The lender will require...

This Practice Note brings together practical illustrations of scenarios where legitimate interests may serve as the lawful basis for processing personal data. The examples are collated from several sources: Information Commissioner’s Office ( ICO) UK GDPR guidance and resources— Legitimate interests European Data Protection Board ( EDPB) Guidelines 1/2024 on processing personal data under Article 6(1)(f) WP29 (now the EDPB) Opinion on the notion of legitimate interests of the data controller under Article 7 of Directive 95/46/ EC—predating the EU General Data Protection Regulation ( EU GDPR), with Guidelines 1/2024 stated to build upon that earlier Opinion According to the ICO, EDPB guidelines are no longer directly relevant to the UK regime and are not binding within it. Nonetheless, they may still offer helpful guidance on particular questions. Lawful grounds for processing personal data under UK GDPR You cannot simply process personal data because you wish to. You may only...

There are six principal regulatory bodies focused specifically on the regulation of solicitors’ practices. They are: Legal Services Board ( LSB) Law Society/ Solicitors Regulation Authority ( SRA) Solicitors Disciplinary Tribunal ( SDT) Legal Services Consumer Panel Office for Legal Complaints ( OLC) Legal Ombudsman ( Le O) Some operate solely in relation to solicitors and SRA-authorised law firms, whilst others encompass additional providers of legal services, such as barristers, legal executives and licensed conveyancers. This Practice Note sets out the remit of, and the links between, these six core regulatory bodies. For information on other relevant regulatory and governmental bodies that are not specifically concerned with the legal profession, see Practice Note: Other regulatory bodies—regulation of solicitors. Legal Services Board Before the Legal Services Act 2007 ( LSA 2007), a range of independent legal bodies delivered aspects of...

This Practice Note is aimed at in-house counsel. It sets out how to build a legal risk register — a device for gathering all legal risk details in one location — by classifying each legal threat the organisation encounters, assigning a score to each, and then determining the controls or mitigations to apply effectively across the enterprise as appropriate. To craft a robust legal risk register, start by spotting the legal exposures your business confronts. It is also worthwhile to gauge your organisation’s tolerance for risk at this stage. What is risk? Many organisations maintain a written definition, against which their overall risk environment — and the legal component within it — can be recognised and mapped. If your organisation already has a definition, evaluate it and, if it proves practical, you are well placed to consider what amounts to legal risk. If not, you should assist the...

FORTHCOMING CHANGE : Royal Assent was granted to the Trusts and Succession ( Scotland) Act 2024 on 30 January 2024, representing the first comprehensive overhaul of Scottish trusts law in more than a century since the principal Trusts ( Scotland) Act 1921. Implementation of the trusts elements awaits formal commencement by secondary legislation made by the Scottish Ministers, whereas the succession provisions took effect on 30 April 2024. The main reforms intended to modernise the law are outlined in News Analysis: Trusts and Succession ( Scotland) Bill passed. Practice Notes on areas of Scottish trusts and succession law will be further updated to reflect this new legislation. Protection against disinheritance Where someone dies domiciled in Scotland, legal rights make up part of the entitlement of the deceased’s spouse and children (or, in certain circumstances, remoter issue) when the deceased died intestate. These rights also protect the...

This Practice Note Initially created in partnership with Cranfield School of Management and later reworked and expanded by Beth Pipe of On Live Learning, this Practice Note explores the essential phases of the project lifecycle and effective set up. Investing time up front in solid planning is arguably the most critical step, yet it is the one most often bypassed as excitement to start takes over. As Abraham Lincoln famously observed: if given eight hours to cut down a tree, he would devote six to sharpening the axe. Projects flow far more smoothly when the parameters are clarified from the outset. In this Practice Note we guide you through: the project lifecycle—what unfolds at each stage? set up: how to frame and define the project stakeholders: who they are and why they count roles and responsibilities: who is accountable for what planning time, resources, and...

This guide was first created in partnership with Cranfield School of Management and later refined by Beth Pipe, On Live Learning. Starting a project can be thrilling, bringing fresh ideas and reinvigorating ageing systems and processes, yet it must be managed. This Practice Note provides guidance on: kick off: launching your project safely managing risk: what is it and how could it impact? using tools such as Critical Path Analysis and Gantt Charts project implementation: how to stay in control closing the project: what to do when it is all over Kick off: launching your project safely The aim of this phase is to become far more precise about how the project will be implemented, and to use that output to launch the work and keep it moving. The approach and management needed to achieve the objectives should be defined in a...

In this Practice Note, we will navigate the five principal stages of legal project management ( LPM) through an illustration drawn from an in-house legal team at a multinational drinks manufacturer. It may initially feel long‑winded; however, the virtue of LPM is that once the process is set and the tools are in place, everyone can follow the same process and rely on the same tools, scaling up or down to suit projects of varying size. Stage 1: Defining the scope This stage is the point at which you should devote time to gaining a complete understanding of the project’s scope and to mapping all relevant stakeholders. You can find further guidance on this in Practice Note: Project management: Project lifecycle and set‑up. Example: Suppose the marketing team come to you wishing to launch a limited‑edition flavour and have teamed up with a celebrity for...

In recent years, the idea of Legal Project Management ( LPM) has gained real momentum within the legal sector. This Practice Note offers an introduction to LPM and explores: what LPM is and how it can assist in-house lawyers the phases of legal project management and what occurs at each stage how to begin with LPM This Practice Note can be read alongside Practice Note: Legal project management: A step-by-step guide, and further guidance on project management generally is available in the Project management subtopic. What is Legal Project Management ( LPM)? Put simply, it is the application of project management principles to legal work. Project management first emerged in the 1950s, with roots in engineering and construction. Over the decades, its value was recognised beyond heavy industry, and it was taken up across numerous business sectors, including IT, finance and professional services. Today, project management is regarded as an...