Independent legal advice is required by individuals who are considering a risky proposition that offers them no personal benefit. This is to safeguard them, ensuring that they understand the risks that they are taking and remain keen to proceed.
Why ILA may be needed
There are many circumstances in which individuals may need to seek ILA. The most common are:
1. A director of a limited company needs to sign a personal guarantee to secure a loan or finance agreement for their business.
2. An individual plans to assume mortgage repayment responsibility for a property whose title is not in their name.
3. An individual requires a bridging loan to bring a property that they are purchasing up to a standard that is acceptable to a mortgage lender.
Why ILA is needed
An independent and impartial third party such as https://www.samconveyancing.co.uk/news/conveyancing/independent-legal-advice-4849 can simplify many complex legal and financial matters, advising clients on their rights and responsibilities before they enter into agreements which could cause them financial, legal or reputational harm.
The solicitor will ensure that their client understands the situation that they are entering into and can make an informed decision as to whether they wish to proceed. They will ensure that their client is entering into the agreement of their own accord, free from coercion or duress and that they comply with relevant legislative requirements.
Process for obtaining ILA
The process for obtaining ILA is simple. First, the person involved in the transaction will select a qualified and impartial lawyer to advise them. They may seek recommendations or check for online reviews. They will request an appointment and provide all the necessary information to allow the lawyer to prepare adequately for their meeting.
The meeting may be held in person, or by video call. The lawyer will need to verify the client’s identity before consulting on the matter at hand. They will explain the implications and risks of the matter and answer any questions that their client has. They will explore alternative courses of action and make recommendations based on their client’s individual circumstances.
They will provide a written summary of their advice and recommendations and sign an ILA certificate, at which point their client may, if they choose, progress their initial transaction.
Cost of ILA
Many solicitors offer a fixed price fee structure for ILA, with the cost dependent on the complexity of the transaction to be discussed. A simple occupier waiver will typically cost less than £200 while equity release discussions frequently exceed £1,000.
It is important to discuss your particular circumstances with your chosen solicitor to ensure that you receive expert advice at a price that offers value for money.