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Independent Legal Advice (ILA)

What is Independent Legal Advice?

Independent Legal Advice is a signed document to confirm that you have received legal advice in relation to a particular matter.

The advice must be taken from an independent alternate solicitor or Chartered Legal Executive who is not involved in the original proceedings.

Examples of when an ILA is required are:

  • Personal Guarantees – where a person guarantees that they will repay a loan made to someone else.
  • Directors Guarantee – where a director guarantees on behalf of the business for a business loan or mortgage.
  • Settlement Agreements – in employment matters.
  • Transfers of Equity.
  • Occupiers Consent Forms.
  • Mortgages – joint borrow sole proprietor mortgages.

It is important that you get advice with regards to any of the above, as signing these documents without advice may mean that you do not fully understand the nature and risk involved.
Banks will ask that you obtain independent legal advice so that they have confirmation you have not been unduly influenced and that you understand the documents you are signing.
Often a bank or your own solicitor may advise you that you need to take ILA at a critical time and leave you with only a short time frame to obtain this.

What do we offer?

Fast
Turnaround

Advice

This can be given by appointment, Skype or Facetime to suit you

Fixed Fees Are Available

Competitive
Rates

Paperwork

This is to be signed and returned the same day

How much will it cost me?

  • Occupier’s consent: £160 + VAT per consent
  • Personal/Director Guarantee: Quote based on document needed
  • Joint Borrowers Sole Proprietor: £150 + VAT
  • Other independent legal advice: £160 + VAT
  • ID certification: £125 + VAT
  • ID1 form: £125 + VAT
  • Witness signatures: £125 + VAT per document

Why do some mortgage lenders require this information?

In the case of Royal Bank of Scotland v Etridge, the courts agreed that borrowers for a mortgage or loan should be advised to have independent advice from an independent professional before they sign any documentation. Otherwise it was seen by the courts that the bank or mortgage companies or any other party to the agreement could be imparting undue influence upon the borrower.

For example, if an elderly father is asked to take out a mortgage or be a guarantor on a mortgage for their child, the banks would want to ensure that there is no pressure from the family to do this by having a separate meeting away from the main situation.

The lender will require that the borrower of the money enters into the guarantee knowing the risks, the penalties and the financial repercussions of the transaction.

If there is any doubt, then the independent solicitor should advise against signing the paperwork and give you full reasons as to why this is the case.

Why do lenders want people to have Independent Legal Advice?

A bank or building society also wants to ensure they are protected from scrutiny. By asking a borrower to get an ILA they show they have satisfied their duty of care to that borrower.

Why use Oakwood Property Solicitors?

It can often be difficult to find a solicitor who will assist you in these matters at short notice. This is where we can step in and help.

There are certain requirements that a solicitor must provide to ensure that you receive the correct independent legal advice. We will therefore:

  • Have a face-to-face meeting which can be done by way of an in-person meeting or a video call. No other party should be present at the meeting to prevent undue influence from another party. 
  • No legal jargon – it is important that the paperwork is “translated” so that you fully understand what you are signing or give you the opportunity to change your mind about the transaction.
  • Explain what the consequences of signing the paperwork would be and any connected risks. The borrower would then be asked to sign the paperwork which would be returned to the lender.

How do I get Independent Legal Advice?

Call our team at Oakwood Property Solicitors on 0113 218 5727 and we can take you through everything that you need to know.

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