FAQs
Some Frequently Asked Questions and Answers for our Independent Legal Advice Services
What is “Independent Legal Advice”?
-So…, you’ve been asked by your lender, solicitor or financial Advisor to obtain “Independent Legal Advice” in connection with a mortgage or guarantee either you or a relative or partner propose to enter into. What does this mean, and why is it required??
- The reason harks back to the 1990’s, when in a number of cases that went through our court system parties’ argued successfully that they should not be bound by a loan, guarantee agreement or mortgage because they were not aware of, or understand what they were signing up to, and the potential effect on them, or that they were unduly influenced by someone else into signing bank documentation.
- The Courts found favour with these arguments and litigants have been able to escape liability under the loans and guarantees in question.
- The Courts effectively concluded that a mortgage / loan / guarantee may not be enforceable in some cases unless the person signing it is advised by an independent lawyer as to the contents of the document they are asked to sign, and the possible consequences on the person signing, taking into account the person’s own situation. Specifically, the courts ruled that, in order to rely on a loan / guarantee, the lender is under a duty of care to ensure that the person signing receives independent legal advice at a face-to-face meeting from a solicitor, advising them in respect of the document they propose to sign.
- In taking advice (known as “Independent Legal Advice”) from a solicitor, the people signing up to the loans, guarantees and other such documents were no longer able to avoid liability by claiming they were unaware of the consequences or were pressured into doing so.
- As a result, most banks, building society’s and other lenders require people signing some types of guarantee and other mortgage documentation to see a solicitor to obtain independent legal advice before the loan can be concluded.
When do I need to take Independent Legal Advice?
Banks and other lending institutions generally require people to take Independent Legal Advice in the following situations, although note that this is not a comprehensive list:-
- Where you live at a Property, or intend to do so, as an adult occupier who is not listed as a borrower on the mortgage. The lender will require you to sign a form confirming that you will vacate the Property if they repossess, and waiving any financial interest you may have in the mortgaged Property. Different lenders have different names for the forms they want signed, but these forms are often known as “Occupier’s Waiver” or “Deed of Consent” or “Deed of Postponement”.
- Where you are a director in a Company acting as a guarantor for the Company’s borrowing. For example where the company takes a loan or obtains an overdraft and where you as a director are required to stand as guarantor for that borrowing.
- Where you act as guarantor for any other loan or mortgage.
- Where a bank lends money by way of mortgage to a borrower who is not going to be an owner of the subject Property;
3rd Party Legal Mortgages (where the Borrower is not the same person as the person offering the lender security) and the Company or LLP proposes to borrow money for which you will be liable - “Springboard” Mortgages.
- In some circumstances, where you propose to make a large gift, such as a deposit for a house, or a gift of equity in a property.
- Employment Settlement Agreements.
- For loans which are offered on onerous terms.
How much does it cost to obtain Independent Legal Advice?
The cost of Independent Legal Advice can vary greatly, with many high street solicitors charging high fees or often declining to provide this service.
At ILA-Connect, our pricing is straightforward and transparent. For one person, the cost is just £150 incl VAT. We also offer discounts for cases where ILA is required for more than one person. Importantly, despite many years of providing this service, we have never increased our fees.
By partnering directly with panel solicitors, we ensure affordable prices and a prompt, efficient service, giving you the best possible support without unnecessary delays or excessive costs.
Why have the solicitors I have spoken to declined to provide me with the Independent Legal Advice I need?
A few years ago, obtaining Independent Legal Advice (ILA) was relatively straightforward. However, several recent cases have highlighted instances where solicitors provided inadequate advice.
As a result, many solicitors now decline to offer ILA, viewing it as “high risk and low reward.” Additionally, some Professional Indemnity Insurance policies prohibit solicitors from providing ILA altogether.
At ILA-Connect, we have worked hard to address these challenges by partnering with solicitors who specialise in providing ILA. Our service is designed to ensure that you can easily and quickly connect with a qualified solicitor who will deliver the advice via a secure video call.
This means you can receive the service promptly without unnecessary delays, and at a clear, reasonable cost.
How long does it take to obtain Independent Legal Advice?
Our service is designed to be fast and efficient. Once you book an appointment through our website, you can often secure a meeting with a solicitor within 1-3 working days, with same-day availability sometimes possible. The appointment itself is conducted via a Zoom meeting and typically lasts just 15 minutes.
After the meeting, the solicitor can confirm to your lender that the Independent Legal Advice has been provided, often within 24-48 hours. This ensures minimal delays and allows you to proceed with your transaction promptly.
Can I waive the requirement for Independent Legal Advice?
Unfortunately, the short answer is no—if you want to satisfy your lender’s requirements and ensure the transaction proceeds smoothly. While you can technically refuse to take this step, it’s highly likely your lender will refuse to proceed unless you comply with their request.
This is where ILA-Connect comes in. We streamline the process by helping you fulfill this requirement quickly, efficiently, and at minimal cost. With our straightforward and affordable service, we ensure this box is ticked with no unnecessary fuss, so you can move forward with your transaction without delays.