Loan Consent Letter Template for England and Wales

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Key Requirements PROMPT example:

Loan Consent Letter

"I need a Loan Consent Letter for our corporate borrower to permit the sale of a subsidiary company, based on our existing £50M facility agreement dated 15 March 2025, ensuring all existing security arrangements remain in place."

Document background
The Loan Consent Letter is a crucial document in lending relationships governed by English and Welsh law, used when a borrower needs to take action that would otherwise breach their loan agreement terms. This document provides formal written consent from the lender, protecting both parties' interests. The letter typically specifies what is being consented to, any conditions attached to the consent, and ensures compliance with the original loan agreement while allowing necessary flexibility. It's essential to document such consents properly to maintain clear records and avoid future disputes.
Suggested Sections

1. Date and Reference: Clear identification of when the consent is given and any reference numbers

2. Addressee Details: Full details of the party to whom consent is being given

3. Original Loan Details: Reference to the original loan agreement including date and parties

4. Consent Subject Matter: Clear description of what is being consented to

5. Conditions of Consent: Any conditions that must be met for the consent to be valid

6. Signature Block: Space for authorized signatory

Optional Sections

1. Fee Information: Details of any fees charged for providing consent - include when a fee is being charged for the consent

2. Time Limitation: Period for which the consent remains valid - include when the consent is time-limited

3. Additional Parties: Reference to other relevant parties - include when consent affects multiple parties

Suggested Schedules

1. Copy of Original Loan Agreement: Reference document showing original terms

2. Supporting Documentation: Any relevant documents supporting the reason for consent

3. Authority Evidence: Evidence of authority to provide consent if required

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant Industries
Relevant Teams
Relevant Roles
Industries

Financial Services and Markets Act 2000: Primary legislation regulating financial services and markets in the UK, including requirements for authorized lenders and financial services providers

Consumer Credit Act 1974: Governs consumer credit agreements, including documentation requirements, disclosure obligations, and consumer protection provisions

Law of Property Act 1925: Fundamental legislation for secured lending, containing key provisions relating to property rights and security interests

FCA Regulations: Regulatory framework established by the Financial Conduct Authority, covering conduct of business rules and fair treatment of customers

Consumer Rights Act 2015: Modern consumer protection legislation incorporating unfair terms provisions and transparency requirements

Contracts (Rights of Third Parties) Act 1999: Legislation governing how third parties may enforce terms of contracts to which they are not direct parties

Misrepresentation Act 1967: Legislation dealing with false or misleading statements made during contract formation and their remedies

Data Protection Act 2018: UK's implementation of data protection standards, working alongside UK GDPR to regulate personal data processing and privacy

Money Laundering Regulations 2017: Regulations setting out requirements for KYC (Know Your Customer) and anti-money laundering procedures in financial transactions

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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