Why do I need Independent Legal Advice (ILA) when buying a property with a mortgage?

What is Independent Legal Advice and what is it's purpose?

Independent Legal Advice (ILA) refers to legal advice given by a legal professional, who is independent from the transaction.  

The aim of ILA is to protect you and any other parties to the transaction.  It ensures that you are entering into an agreement voluntarily, without pressure, and that you fully understand the legal and financial implications before signing any documents. It’s an important requirement which avoids any misunderstandings or disputes down the line.

How does Independent Legal Advice protect you?

ILA ensures that:

• You understand exactly what you’re committing to
• You are signing voluntarily and without undue influence
• Your rights, obligations, and potential risks are clearly explained
• The Lender can enforce the Guarantee, if the Borrower defaults

When might Independent Legal Advice be required?

ILA may be either a requirement or a recommendation in many situations. Some of the most common situations we see are set out below:

1. You are noted as a borrower on another person’s mortgage but will not be registered on the title (Joint Borrower, Sole Proprietor)
2. You are guaranteeing a mortgage or loan on behalf of a limited company (Director’s Guarantee)
3. You will be living in the property but are not noted as borrower on the mortgage (Occupier’s Consent)
4. You are removing a borrower from a mortgage after separation/divorce (Transfer of Equity)
5. You are gifting money towards a property purchase (Gifted Deposit)
6. Your property is being used as security for someone else’s loan (Third-Party Legal Charge)

What happens during an Independent Legal Advice appointment?

ILA can be provided in person or, if your lender allows, via video conference, although that is becoming less usual.  During your appointment, your appointed solicitor will:

1. Meet you one to one to explain the nature and risks of the documents
2. Verify your ID (passport and proof of address) and certify the same (if required)
3. Answer any question you may have regarding the documents
4. Sign a certificate and/or letter of advice confirming that advice has been given and witness your signature (if advice is provided in person)

How our Residential Real Estate team can help you

At Thackray Williams our specialist residential real estate lawyers in London, Kent and the South East have extensive, and specialist experience of providing Independent Legal Advice, both in-person and online appointments. Our friendly team will guide you through the process, answer your questions, and make sure you’re confident before signing any documents.

Please note that appointments do need to be pre-arranged.  We will also ask to see the documents before agreeing to act to ensure it is something we can advise on.  Once that has been confirmed, we will then advise you of the fees and arrange to make an appointment to meet you in order to provide the necessary advice.

Contact us today to arrange your appointment and get clear, practical advice when you need it by telephoning 020 8290 0440.