Self-Builders Can Now Protect Their Assets Through Personal Guarantee Insurance

FOLLOWING THE launch of the government’s Help to Build scheme, self-builders who have secured a personal guarantee backed loan for their self-build project, whether through the scheme or funded independently, can now protect their personal assets from risk. Purbeck Personal Guarantee Insurance (PGI) now offers Property PGI for self-builders.

Purbeck Personal Guarantee Insurance is the UK’s first and only provider of personal guarantee insurance and has protected 1,300 directors on over £200million of Personal Guarantee commitments.

Property Personal Guarantee Insurance is available for Development Loans and Bridging Loans as well as Commercial Property Mortgages. PGI can be used in cases where the self-builder has created a limited company structure for their self-build project.

As a condition of raising finance secured against property, self-builders as well as property developers are often required to provide additional security to the lender by signing a Personal Guarantee. By signing a Personal Guarantee, the guarantors are placing their personal estate at risk. This means that if the development fails the lender can seek recoveries from the guarantors personally.

Settle up to 80% Debt

Todd Davison, MD of Purbeck Personal Guarantee Insurance, 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. 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.”

>> Read about the Help to Build scheme in the news