What is a certificate of Independent Legal Advice?
Independent Legal Advice is a form of professional guidance that is certified as it is given by an independent solicitor to an individual before signing conveyancing mortgage documents. The advice is often in relation to mortgage conditions and provided to Directors of Limited companies who are acting as guarantor to the mortgage. It is provided in person between our London mortgage solicitors and client alone. The advice given is objective, as the mortgage advice is given by a third-party solicitor who is separate from the parties involved in the agreement or transaction in question.
Acquiring this independent legal advice ensures that the individual is fully aware of the consequences of signing any documentation, this avoids misrepresentation or undue influence. Our London mortgage solicitors will then confirm that they have discussed all the relevant information with you using a Certificate of Independent Legal Advice.
Is independent legal advice required by your mortgage lender or mortgage documents?
In most cases your mortgage lender will instruct your solicitor to advise your Limited company. However, they will often require a certificate of independent legal advice to be signed by a solicitor, confirming that the necessary Independent Legal Advice was given to the company’s Directors.
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Directors personal guarantees
When a lender offers a mortgage to a Limited company, a personal guarantee agreement is often required. This is because this way any loans taken out are more secure as the business director is responsible to pay off any loans if they are unable to be paid off by the company or business itself.
This Personal Guarantee is usually given by a director as security for the money borrowed by a company, of which they are normally a shareholder
If the director does not have enough money to cover the debt, the bank will be able to take him to court and enforce a debt against his assets and he may be made bankrupt
Solicitors will provide the Director with certified and independent legal advice to satisfy the lenders requirements.
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Transfers of equity
When a jointly owned property is transferred to one of those owners or when more people are added to the ownership of the property. The term equity refers to how much of the property you own.
This is often done when a couple get married or enters a civil partnership or if a couple divorce or separate, the person who leaves the shared ownership receives a percentage share of the equity from the property.
In these transactions our solicitors will act on your behalf for both the equity transfer and any mortgaging and on any remortgage.
For more information on transfers of equity click here
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Occupiers waiver form
Whereby a person signs a contract to confirm that they will be living in a property but are not the owners of the property and do not hold the right to claim ownership of the said property.
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Personal guarantees
An individual will guarantee to repay a loan on the behalf of someone else. Our London mortgage solicitors often encourage this as it reassures lenders that the loan will be secure.
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Employment settlement agreement
Our solicitors should advise you before signing an employment settlement agreement as this agreement is legally binding and involves an employer offering a payment to an employer in return for a severance payment and an agreement to keep any mentioned terms and agreements.
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Family mortgages
This is a home loan that is set up between family members. Parents often help their children buy or refinance property.
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Corporate loans
These are loans given to companies to meet their capital requirements, usually for small businesses or start-ups.
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Land Registry ID1 Form
When a mortgage or transfer deed is being registered, this form is completed by a solicitor to provide evidence of identity for a private individual who isn’t legally represented.
When is Independent Legal Advice beneficial?
Receiving Independent mortgage law Advice from our London mortgage solicitors is imperative and is something that you should consider, especially if you have found yourself involved in any of the circumstances mentioned above. It is important to know the implications and seek appropriate professional guidance when entering into these agreements.
This is because you are legally bound the agreements made in the contract and will have trouble contesting these if you decide to do so, as the judge will be likely to dismiss your claims on the grounds that you have actively decided not to discuss the terms of your arrangement with our London mortgage solicitors beforehand.
How Starck Uberoi can help
Independent Legal Advice may be unexpected, inconvenient or something which you may not have the time or budget to organise. Our London mortgage solicitors are able to offer independent legal advice at short notice within 48 hours. For more information, please visit our Conveyancing page, or to book an appointment please call 020 8840 6640. Our offices are based in Ealing and London Victoria. For an appointment at any of our offices, email us at solicitor@starckuberoi.co.uk.
