Why you might need a certificate of independent legal advice and how to obtain one
Obtaining a certificate of independent legal advice is a necessary part of any conveyancing transaction which involves a guarantor, or anyone who will be using their property as security for the loan other than the borrower. This important step prevents someone from entering into an agreement that imposes significant financial risks onto them without understanding the dangers or because they’re being pressured by the borrower.
Why might I need independent legal advice?
When someone is agreeing to provide a personal guarantee or security for a mortgage not being taken out in their own name, the lender needs to ensure that the individual understands the financial risk they’re taking and that they’re not being pressured into the agreement. For this reason, many lenders require the individual to meet with a solicitor without the presence of the borrower, where the solicitor can explain the legal and financial implications of the proposed agreement and safeguard against undue influence. You may require an independent legal advice certificate if:
- You are entering into a joint borrower, sole proprietor mortgage with someone else
- You are a director taking out a corporate loan and providing a personal guarantee yourself
- Someone else has offered a personal guarantee on your behalf or is allowing you to secure your loan on their property
- There is a conflict of interest between yourself and another person involved in the purchase and your own solicitor is not able to act for both of you
- You are transferring equity from a property you own jointly with someone else to a property that is/will be owned in your sole name
Assuming the individual is still happy to proceed following the meeting, the solicitor then provides an Independent Legal Advice Certificate, which assures the lender that the individual has been made aware of the risks and is still willing to sign the agreement of their own volition. Buying, selling or remortgaging? Use our online conveyancing quote calculator to obtain an instant conveyancing quote.
Do I have to get independent legal advice?
If your lender or solicitor has said that you will need independent legal advice, you will simply have to obtain legal advice in order to proceed. Lenders and solicitors both have a duty to safeguard against undue influence as per their regulations. Additionally, lenders have to ensure their security is protected and want to avoid accepting a guarantee from someone who does not have the means to pay back the debt should the need arise.
Who can provide independent legal advice?
It will depend on the sort of advice you require, but generally speaking you can usually obtain a certificate of independent legal advice from any qualified Solicitor, licenced Conveyancer or qualified Legal Executive. In some cases, you may need to seek a specialist Solicitor. Additionally, whoever provides your independent legal advice will need to be on the conveyancing panel for the relevant lender. Our solicitors are on the panel for the majority high street lenders, including Barclays, Halifax, HSBC, Nationwide, NatWest and Santander – see the full list of our lender panels on our website.
What can my solicitor advise me on?
Your solicitor will advise on the legal and financial implications of the agreement from your perspective. Independent legal advice isn’t simply to point out risks arising from the agreement that you were already aware of – they will call your attention to risks that you might not have been aware of. For example; if you are taking out a joint borrower, sole proprietor loan, do you know what would happen if the proprietor was to pass away unexpectedly? They can also advise on any other, lower-risk ways in which you could help the borrower achieve their aim if possible. For example, instead of taking out a joint borrower, sole proprietor mortgage with your child to help them get their first home, you could opt to provide a gifted deposit instead.
How do I get an independent legal advice certificate?
You will need to book an appointment with a solicitor (or licenced conveyancer) on the lender panel for the relevant lender. This cannot be the same Conveyancing Solicitor or Conveyancer handling the transaction for the recipient of the guarantee or security. You must also obtain advice from someone sufficiently qualified and not a trainee. When you arrive for your appointment, you will need to bring your ID with you so that your adviser can verify your identity first. If you do not bring your ID, they will not be able to give advice. You should also bring any documents relevant to the agreement with you (such as the mortgage deed) to the appointment, so that the solicitor can sufficiently advise on them. Your solicitor will then ask you some questions to assess your position and your understanding of the agreement as it currently stands. From there, they will advise you on what the terms of the agreement mean for you and make you aware of any risks you face if you agree. If you are still happy to proceed, the solicitor will give you the independent legal advice certificate which will then need to be sent to your lender.
How much does independent legal advice cost?
The specific fee you pay will depend on the advice sought and the lender who has requested the independent legal advice certificate. Call our team on 020 8840 6640 or email solicitor@starckuberoi.co.uk to get a quote today.
How long does it take to get an independent legal advice certificate?
Provided that you have sufficient ID and have already obtained the relevant documents for signature before your appointment, obtaining the certificate should be very quick. The solicitor will usually be able to provide the certificate on the same day.
Can a solicitor refuse to give me an independent legal advice certificate?
It is uncommon, but it is possible. By providing the independent legal advice certificate, the solicitor is stating that they believe that the individual understands the agreement and the risks involved. If they cannot be satisfied that:
- The individual is who they say they are;
- The individual understands the risks they’re taking by signing the agreement; and
- The individual is not being pressured into signing the agreement.
Then the solicitor cannot provide an independent legal advice certificate. This could happen if the individual does not seem to speak or understand English sufficiently, or if the individual appears to lack the mental capacity to comprehend the agreement they’re signing up to. Although the solicitor will warn the individual if the agreement as it currently stands is unfair and puts them at a high risk, they can still provide the independent legal advice certificate provided that they feel the individual understands and is willing to accept the risk.
Do I have to meet with a solicitor in person to obtain an independent legal advice certificate?
You will need to check that your lender accepts online meetings for independent legal advice. If they do, we can arrange an appointment with you over Zoom or Microsoft Teams so you do not need to come to the office if you do not want to. You will be asked by the solicitor to show that you are the only person present in the room for the appointment.
How Starck Uberoi Solicitors can help
Our experienced conveyancing solicitors are on the lender panel for the vast majority of high-street lenders, including the more specialist lenders such as bridging finance lenders. To book an appointment, please call 020 8840 6640 or email solicitor@starckuberoi.co.uk.
Our Brentford solicitors, are located on the High Street in a grand three-story building, just a short distance from Brentford County Court. Our Belgravia solicitors are located Just a 5 minute walk from Victoria tube station in Grosvenor Gardens. Our Ealing solicitors are only a short walk from both Ealing Broadway and South Ealing and our Richmond solicitors have the pleasure of overlooking the picturesque Richmond Green. Finally our solicitors in Canterbury are located in the within the UNESCO World Heritage Site of Canterbury Cathedral.
Our partner, Raminder Singh Uberoi, can also provide a notary public service at any of our London offices.
