Independent Legal Advice (ILA)
- If you're involved in a transaction where you are put at risk, without getting any benefit from it, you must get an independent legal advice certificate from a solicitor, attesting that you fully understand the risks.
- The legal advice must be given by an independent solicitor, in order to avoid conflicts of interest.
- In the past, legal advice used to be given in person, during a face-to-face meeting. However, you can now get independent legal advice online, via video conference. This is a service we can help with.
- Skip to our Frequently Asked Questions for other details or a breakdown of costs.
What is Independent Legal Advice (ILA)?
Independent Legal Advice (ILA) is impartial legal advice provided by a qualified and independent solicitor who has no conflict of interest.
The solicitor acts solely in your best interest (the client), explaining the legal implications of a transaction and ensuring you fully understand the risks and responsibilities involved. This is often required for personal guarantees, mortgages, and other legal agreements.
Why do I need Independent Legal Advice (ILA)?
Independent Legal Advice (ILA) is often a mandatory requirement by lenders and other parties in transactions where one party is placed at risk without direct benefit.
This is to protect the vulnerable party and ensure they fully understand the legal implications of the agreement.
Lenders, for example, require an independent legal advice certificate from the solicitor to confirm that they have explained the details, they're satisfied that you understand the terms, and are not being pressured or coerced to agree to them by anyone else.
This certificate serves as proof that you received independent legal advice from a qualified independent legal advice solicitor.
Independent Legal Advice for Personal Guarantees
If you're personally guaranteeing a debt for another person or a mortgage for a shareholder or company mortgage, you need to fully understand the risk you're taking on. A personal guarantee makes you personally liable for the debt if the other party defaults.
For example, if you guarantee a business loan for a friend and their business fails, you could be held responsible for repaying the entire loan. Independent legal advice will explain the extent of your liability and the potential consequences of the guarantee.
Independent Legal Advice for Family Law matters
You may need independent legal advice on financial statements, settlements, or child custody agreements, usually during a divorce or dissolution. These agreements can have long-term financial and legal implications.
For instance, a financial settlement might involve transferring assets or agreeing to spousal support. ILA ensures you understand your rights and obligations under the agreement and that you are not being unfairly disadvantaged.
Independent Legal Advice for Property Transactions
You will need independent legal advice on certain property transactions and mortgage products. For example, if you are entering into a Joint Mortgage Sole Proprietor (JMSP) agreement, where you are liable for the mortgage but not the legal owner of the property, you will need ILA.
This is because you are taking on a significant financial risk without the direct benefit of ownership. Your solicitor will explain the implications of being liable for the debt and what happens if the other party defaults on the mortgage.
Independent Legal Advice for Wills and Estate Planning
Legal advice may be required when creating or modifying a will or trust, and in general estate planning, particularly where an individual is being assisted in their estate planning by a relative or connected party.
For instance, if you are making a will that significantly favours one beneficiary over others, independent legal advice can ensure that you are doing so willingly and understand the potential challenges that might arise.
This advice is especially important when a family member or close associate is helping you with the will to avoid any perception of coercion or undue influence.
Independent Legal Advice for Employment Agreements
When negotiating employment contracts, severance agreements, and settlement agreements, independent legal advice may be required to protect the rights and interests of the employee to ensure they understand the terms to agree they are fair.
The employer may have to pay for the employee's advice, but the employee can choose their own independent legal advice solicitor. For example, if you are offered a severance package, ILA will help you understand if the offer is fair and compliant with employment law. It will also help you negotiate better terms if needed.
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What happens after you instruct?
We will review the documents you sent.
We will contact you to book an appointment.
You will then attend your meeting with a qualified solicitor.
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How does our Independent Legal Advice work?
During a meeting with your independent legal advice solicitor, the risks and terms of your transaction will be thoroughly explained. We offer convenient online consultations via video call, making the process fast and accessible.
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Book your Independent Legal Advice consultation and submit documents
Schedule a convenient time for your online consultation. You'll securely send us the relevant documents related to your transaction (e.g., mortgage agreement, personal guarantee, etc.) for review before the meeting. This allows the solicitor to prepare and provide the most effective advice.
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ID verification and explanation of risks by the Independent Legal Advice solicitor
During the online meeting, your independent legal advice solicitor will verify your identity and thoroughly explain the risks and implications of the transaction.
They will ensure you understand the legal terms, your responsibilities, and the potential consequences. They'll answer all your questions and address any concerns you may have.
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Receive your Independent Legal Advice certificate
After the consultation, you will receive a formal Independent Legal Advice Certificate as proof that you have received independent legal advice. This document is often required by lenders and other parties involved in the transaction.
We adhere to strict data protection regulations to ensure the confidentiality of your information.
- Arrange a free call today with a member of our ILA team to discuss your needs.
- Advice appointments available from 24/02/2025.*
- Video conference to your own home/work.
- Slots from 9am to 5pm.
- Fast turnaround from an experienced solicitor.
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What advice is covered in the meeting?
During your ILA meeting, your independent legal advice solicitor will discuss any responsibilities you are agreeing to and the risks involved. They will explain complex legal concepts in plain English, ensuring you fully understand the implications of the agreement.
Terms
Your solicitor will explain the meaning of all the terms in the transaction or agreement, including any complex legal jargon. For example, if you're signing a mortgage agreement, they'll explain what "redemption penalty" or "variable interest rate" means and how it affects you.
Rights & responsibilities
Your solicitor will detail your legal rights, obligations, and duties under the transaction or agreement. It's crucial to understand these fully, as failing to meet them may have serious consequences.
For instance, if you're guaranteeing a loan, they'll explain your liability if the borrower defaults. If you're signing a separation agreement, they will outline your rights and responsibilities regarding finances, property, and children.
Legal implications
Your solicitor will identify and explain the potential risks, liabilities, and legal challenges that may arise from the transaction or agreement.
For example, they might discuss the risks of losing your home if you guarantee a loan or the potential financial implications of a business venture. They might discuss the risks of being sued. They will make sure that you are aware of all the worst-case scenarios.
Legal compliance
Your solicitor will ensure that the proposed transaction or agreement is aligned with the law and applicable regulations and legal standards. They will check for any legal issues or red flags that you should be aware of.
Tax liabilities
They will also explain the tax liabilities and financial implications of the transaction or agreement. For example, they will discuss any potential capital gains tax or stamp duty implications.
They will discuss the financial risks and rewards of the agreement and what the long-term financial impact could be.
Alternative options
If the terms of the agreement are not in your favour, your solicitor will identify other legal options available to you or points you can negotiate. They will help you understand the strength of your position and what points you can negotiate on.
Timescales and process
Your solicitor will explain the steps involved in completing the transaction or executing the agreement and the typical timeframes for each stage. They will make sure you understand the process and what to expect at each stage.
Confidentiality and your questions
Your solicitor will assure you of confidentiality and privacy regarding the details of your Independent Legal Advice (ILA) meeting, in accordance with legal and ethical obligations.
They will also answer any questions or concerns you may have, ensuring you have a complete understanding of the situation. Don't hesitate to ask them anything – no question is too small or too complex.
When should you seek independent legal advice?
Independent Legal Advice (ILA) is crucial in situations where your legal rights and financial well-being may be at risk. Here are some of the most common transactions where ILA is required:
Service | What ILA is required? |
| Directors Guarantee | Directors of a company are required to get legal advice when obtaining a mortgage or loan. The guarantee makes the director personally liable to pay back the mortgage if the company defaults on the mortgage. |
| Joint Mortgage Sole Proprietor | For parents helping their children buy a home or even unmarried couples where one party already owns another property to avoid second home stamp duty. They are on the mortgage but not the legal title so the lender needs the solicitor to advise of the risk of being liable for the mortgage debt. |
| Borrower and Proprietor | When you are the borrower and the proprietor of the property on which the loan is secured, and you will not personally benefit from the loan; the loan is for your registered business or another person. |
| Occupier Waiver Form | For occupiers over 18, the mortgage lender requires them to sign a waiver to waive any rights to live in the property if the lender needs to repossess. |
| Second Charge | Where a party is liable for a mortgage/second charge and the money is being used for something they don't benefit from, the mortgage lender requires them to get legal advice on the risk. |
| Deed of Trust | Where joint owners draft a deed and require a solicitor to provide legal advice to one of the beneficiaries about the terms. |
| Deed of Postponement | Where one charge or mortgage is being 'postponed' to place another loan or charge as first priority. You only need ILA on a deed of postponement under specific circumstances:
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| Separation agreements (such as divorce) | A review of and advice on the separation agreement at the end of a break-up. |
| Bridging Loan | A review of the loan agreement is required to ensure you understand the terms due to the higher interest rates and other risks. |
Equity Release | A review of the lifetime mortgage details and explanation of the risks and costs. |
ILA is often required towards the end of a transaction, so you'll need quick access to expert legal advice. At SAM Conveyancing, we understand this urgency and offer next-day appointments via online video call for your convenience.
We specialise in providing Independent Legal Advice and have extensive experience in a wide range of transactions.
Our solicitors are experts in explaining complex legal matters in plain English, ensuring you fully understand your rights and responsibilities. Contact us today for a fast and convenient online consultation.
What do I get from Independent Legal Advice?
Independent Legal Advice (ILA) protects your rights, interests, and financial well-being in a transparent, legally compliant meeting.
Make informed decisions
Avoid conflicts of interest
Meet legal compliance
Protection from coercion or duress
Establish accountability
Court recognition
Independent legal advice is essential even in joint transactions where all parties seemingly want the same outcome. Each party has potentially conflicting interests that need an independent explanation to fully understand the individual impact.
The solicitor provides a Certificate of Independent Legal Advice as proof of the consultation, which is often required by lenders and other parties involved in the transaction.
ILA example - Transfer of Equity
John and Mary are separating and jointly own a property. They are transferring Mary's share to John, making him the sole owner.
Even though they agree on this, Mary needs independent legal advice. Her solicitor will explain that she will no longer have a legal claim to the property and will help her understand if the amount she receives for her share is fair.
ILA example - Joint Mortgage Sole Proprietor ('JMSP') Mortgage Condition
A JMSP mortgage allows up to four people to be on the mortgage, but only some are legal owners. Parents often use this to help their children buy a home.
The lender requires the borrowers who are not legal owners to get independent legal advice. This is because they are liable for the mortgage without the direct benefit of ownership. The solicitor will explain the implications of this arrangement and the potential risks.
How do I know my lender requires independent legal advice?
The lender will typically inform you in their mortgage offer or instructions to your solicitor. They will likely require proof that you have received independent legal advice.
The instruction might be similar to this: "The legal adviser must explain the content and effect of the first legal mortgage over the Property to CLIENT NAME and arrange for it to be executed. The legal adviser must also complete the attached standard letter confirming that legal advice has been given. The borrowers must pay any fees relating to this matter."
How do I prove I've had independent legal advice?
Your solicitor will provide you with a Certificate of Independent Legal Advice. This document confirms that you have received independent legal advice and understand the implications of the agreement you are signing.
It'll contain the following: "I confirm that I act for CLIENT NAME. I have explained the nature of the Legal Charge and the consequences of signing the first legal mortgage over the property in conjunction with the proposed mortgage application. CLIENT NAME wishes to proceed with this mortgage. I have explained that you require confirmation that I have given this advice so that CLIENT NAME may not dispute being legally bound by the mortgage, and I confirm that I have the authority of CLIENT NAME to give this confirmation".
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Caragh is an excellent writer and copy editor of books, news articles and editorials. She has written extensively for SAM for a variety of conveyancing, survey, property law and mortgage-related articles.
