The requirement for obtaining an ILA has become increasingly common since the House of Lords guidance in the case of Royal Bank of Scotland v Etridge (No 2), where Independent Legal Advice is now required for a lot of mortgage and loan products.
Why is this required? The courts have concluded that lenders are under a duty of care to ensure that the person signing the mortgage/loan documents are aware of the implications of signing the documents, and ensure that there is no undue influence being placed on them.
Circumstances in which you may be asked to have an ILA are as follows:
- You are acting as Guarantor
- You are a Director in a Company acting as Guarantor for the Limited Companies’ borrowing (Personal Guarantee)
- You are an occupier in a property which is to be subject to a mortgage (Occupiers Consent)
- You are a joint borrower on a mortgage however will have no legal ownership in the property (Joint Borrower Sole Proprietor)
Often, the requirement for ILAs comes up towards the end of a transaction and can often be the reason for hold ups and delays whilst the paperwork is being signed and relevant advice appointment being given.
We offer appointments convenient to you, either in person or via video call (if this is accepted by your lender) and explain all the legalities to you in straight forward terms so you understand exactly what you are signing up to.
The legal paperwork relating to ILAs can often be lengthy and complex, so we ensure all the correct explanations are given to you and can talk through and specific questions or concerns you may have.
If you require an ILA please get in touch with us, we will provide you with a quote and discuss the next steps for the appointment to be booked in as soon as possible.
Further reading
Independent Legal Advice – Oakwood Property Solicitors
Our sister firm, Oakwood Solicitors, also has information on Independent Legal Advice, here.
WHAT TO DO NEXT
To make a start on the next step in your property journey, get in touch today to book a consultation with a member of our team. Call us on 0113 218 5727 to find out how we can help you.
