Independent Legal
Advice (ILA)

Examples of when an ILA is required are:

• Personal Guarantees

Where a person guarantees that they will repay a loan made to someone else.

• Directors Guarantee

Where a director guarantees on behalf of the business for a business loan or mortgage.

• Settlement Agreements

In employment matters.

• Mortgages

Such as joint borrow, sole proprietor mortgages.

• Transfers of Equity
• Occupiers Consent Forms

It is very important that you get advice with regards to any of the above as signing these documents without advice may mean that you do not fully understand the nature and risk involved.

Banks will ask that you obtain independent legal advice so that they have confirmation that you have no been unduly influence and that you understand the documents that you are signing.

Often, a bank or your own solicitor may advise you that you need to take ILA at a critical time and leave you with only a short time frame to obtain this.

We therefore offer:

• Fast turnaround
• Advice which can be given by appointment, Skype or Facetime to suit you
• Fixed fees are available
• Competitive rates
• Paperwork to be signed and returned the same day

If you have any other questions, please do not hesitate to contact us for a chat on 0113 200 9720.

Just call our team at Oakwood Solicitors Ltd on 0113 200 9787, and we can take you through everything that you need to know.

In the case of Royal Bank of Scotland v Etridge, the courts agreed that borrowers for a mortgage or loan should be advised to have independent advice from an independent professional before they sign any documentation. Otherwise it was seen by the courts that the bank or mortgage companies or any other party to the agreement could be imparting undue influence upon the borrower.

For example: if an elderly father is asked to take out a mortgage or be a guarantor on a mortgage for their child. The banks would want to ensure that there is no pressure from the family to do this by having a separate meeting away from the main situation.

The lender will require that the borrower of the money enters into the guarantee knowing the risks, the penalties and the financial repercussions of the transaction.

If there is any doubt, then the independent solicitor should advise against signing the paperwork and give you full reasons ass to why this is the case.

A bank or building society also wants to ensure that they are protected from scrutiny. By asking a borrower to get an ILA they safeguard that they have satisfied their duty of care to that borrower.

It can often be very difficult to find a solicitor who will assist you in these matters at such notice. This is where we can step in and help.

There are certain requirements that a solicitor must provide to ensure that you receive the correct independent legal advice. We will therefore:

• Have a face to face meeting which can be done by way of an in-person meeting or by way of webcam, such as Skype
• Ensure that any other party should not be present at the meeting to prevent undue influence from another party
• Avoid legal jargon wherever possible – it is important that the paperwork is ‘translated’ so that you fully understand what you are signing or give you the opportunity to change your mind about the transaction
• Explain what the consequences of signing the paperwork would be and any connected risks
• Instruct that the borrower would then be asked to sign the paperwork which would be returned to the lender