You may have been advised or asked to get Independent Legal Advice ("ILA"), or you may just want to check information you have been given – in most cases, Holmes & Hills Solicitors can offer next day appointments to ensure you can move forward with your legal matter at your pace.
Often, lenders will agree to lend a borrower money, but only if the borrower is backed by a personal guarantor. When lenders are lending to a limited company, for example, they will most commonly request that one or more of the company directors act as guarantor, enabling them to pursue the directors in their personal capacities if the borrower company should default under the loan. Most lenders will require that the personal guarantor(s) obtain ILA prior to the company drawing down the loan, to give the lender some assurance that the guarantor(s) will not try to sidestep their liability under the guarantee at a later date, by claiming they did not know what they were signing up for or were coerced.
When consenting to act as a personal guarantor for another individual or a business, it is important to be aware of the duties, risks, and implications involved . Different lenders may have different terms and conditions which can complicate matters. A solicitor offering Independent Legal Advice will review the mortgage offer/facility letter, security documents, and loan T&Cs and will ensure that each guarantor is appraised of all the facts and that the lender’s requirements for the ILA are complied with, to facilitate drawdown.
Holmes & Hills solicitors do not give advice on mortgage products and their suitability, but can advise on matters related to mortgages, such as where:
With house prices now out of reach for many first-time buyers, it has been increasingly common for buyers to add someone else, often a parent, to their mortgage, in order to increase their borrowing capacity. This is known as a joint borrower, sole proprietor arrangement. In situations such as this, it is always advisable to obtain Independent Legal Advice for the additional borrower from a solicitor other than that which is dealing with the conveyancing, to ensure there is no conflict of interest in the advice being given to either party.
When obtaining a mortgage, if there is another adult occupier in the property concerned who is not being named on the mortgage, the lender may seek assurance that in the event of repossession, the property will be handed back with vacant possession. This is done via an Occupier’s Consent Form, and by signing the form, anyone without a beneficial interest in the property relinquishes any claim to a legal right to possess or live in the property.
Independent Legal Advice should be sought by any occupier of a mortgaged property who is asked to sign an Occupier’s Consent form to ensure this is the correct course of action.
You may be seeking or have been advised to get Independent Legal Advice for any number of reasons not already listed above. Holmes & Hills solicitors can put you in touch with a lawyer in the relevant department and ensure you receive specialist advice.
Holmes & Hills have over 170 expert legal advisors covering a wide range of issues. You can be confident in the advice you are given, and in most cases, we can offer next day appointments. You are able to visit one of our offices in Colchester, Braintree, Witham, Sudbury, Halstead, Tiptree or Coggeshall, or we can offer appointments via phone or Teams video calls.