Independent Legal Advice

Solicitors Waltham Abbey

What is Independent Legal Advice?

Independent legal advice is neutral advice provided by an independent solicitor. The reason you have been asked to obtain independent legal advice is so that you clearly understand the risks of you entering into an agreement.

When will I need Independent Legal Advice?

Independent legal advice is most often required in the following circumstances:

  1. Directors’ Personal Guarantees (for corporate loans and mortgages)
  2. Personal Guarantees (where an individual guarantees repayment of a loan made to another individual)
  3. 3rd Party Legal Mortgages (where the borrower is not the same person as the individual that offers the lender security)
  4. Occupier’s Consent to a Mortgage
  5. Transfer of Equity

The Importance of Independent Legal Advice

Whilst the above-stated types of independent legal advice are usually a bank requirement, it is important not to underestimate the importance of this advice; it is not a formality nor just witnessing your signature. 

To avoid the risk of being sued by a Guarantor/Surety it is vital that lenders ask borrowers to obtain independent legal advice. Therefore, it is vital for Mortgage Lenders that the Guarantor/Surety in a mortgage/loan obtains independent legal advice before the Guarantee/Surety is given.

In short, independent legal advice is given to ensure that the Guarantor/Surety clearly understands what agreement they are signing into.

How long does it take?

This process normally takes 45 mins to 1 hour. 

Who will provide the Independent legal advice and the nature of the advice?

Ms Kam Patel, Principal Solicitor will meet you either in person or via video conference call to discuss the following:

Ensure that you understand the terms of the agreement and are not entering it under undue influence or being coerced into signing the agreement. 

Explain the financial risk and consequences you may face and ensure you clearly understand that other assets belonging to yourself may be at risk to cover repayment. 

Once Ms Patel is satisfied that you understand the terms of the agreement, she will witness you signing the documents. Ms Patel will then a certificate/write a letter to the relevant party to confirm that you have been provided independent legal advice and you understand the terms of the agreement.  

Book your Appointment for Independent Legal Advice Today

Please call our offices on 0203 876 7136 to book your appointment for independent legal advice.

Please note that we can take your instructions by email or telephone.  

Due to Covid-19 we are trying to limit face-to-face contact with clients and are therefore giving independent legal advice via video conference calls. We would therefore be grateful if you could kindly confirm with your lender whether they accept video call or whether they require you to have a face-to-face meeting with us.