When is independent legal advice commonly required?
Independent Legal Advice, otherwise known as ILA, is impartial advice that is provided by an independent solicitor. There are many reasons why independent legal advice might be requested.
The Law Society is an independent professional body for solicitors in England and Wales. They represent solicitors across England and Wales, should you need to identify a solicitor when you require independent legal advice. The following are among the most common scenarios for ILA.
Anyone wishing to take out a corporate loan is advised to seek independent advice before doing so, especially if the loan is secured on a home or against other personal assets.
Occupiers Waiver Form
An Occupier Waiver Form, also known as an Occupier Consent Form, is a document used mostly by mortgage lenders. The signed waiver confirms that in the event that a mortgage should fall into arrears or if the lender seeks to retake possession under the terms of mortgage agreement, the person who signed the waiver agrees to leave the property in question.
The term personal guarantee is where an individual legally promises to repay another person’s debt. For example, if a child is taking on a first time mortgage, parents can sign a personal guarantee to satisfy their lending criteria with a mortgage company.
Deed of Indemnity and Subrogation
A deed of indemnity is a deed signed by a company that is intended to protect you against claims made by third parties. This might occur when a third party tries to collect a debt or damages. These documents are usually highly complex and it is advisable to get quotes beforehand for such professional advice.
Transfer of equity is the process of adding or removing someone from the title deeds of a property, or when the equity from one property is placed on a second property, for example, by remortgaging. Buy to let properties can be purchased via equity transfers to raise funding.
A Director’s Guarantee is a type of declaration or personal guarantee which a director signs. The guarantee states that they are liable for paying off any outstanding amount of debt if the company can’t pay it. Director’s guarantees are often asked for by banks or finance companies on any loan applications made, such as vehicle finance providers, or to purchase property. Ascot solicitors and those in other locations can provide advice should you need it.
Transfers between family members
Family members can purchase and hold property in each other’s name and transfer equity between them. Mortgage agreements require that each family member seeks independent legal advice to avoid any conflict of interest and ensure that each party is entering the agreement of their own free will.
Each family member will need to understand the full impact of such an agreement and that any loan carries risk against other assists or holdings they might have. Ascot solicitors and those across the country can help with the process.
ILAs are there to help protect individuals. It is a way of ensuring that before a document is signed, the risks are fully understood before a transaction takes place. An independent advisor will sign a certificate which confirms that they have provided the relevant legal advice, followed by their client’s signature.