Who is Independent Legal Advice Really For?

At a Glance

Independent legal advice (ILA) can be helpful for those signing legally binding agreements, especially where personal liability, undue influence or power imbalance is involved. Whether it's property transactions, personal guarantees, or mortgages, ILA can protect individual interests by informing them about their rights and liabilities. iLA provides professional, reliable independent legal advice through its online digital ILA consultations.

When is Independent Legal Advice Required in the UK

It’s a common misconception that only complex or high-value transactions require independent legal advice (ILA). In reality, it is best to get ILA for any legally binding arrangements that carry financial, legal or personal risks. The purpose of an ILA here is to inform an individual of their obligations and to ensure they have a thorough understanding of the consequences that come with non-compliance or default.

But when exactly is independent legal advice required? While ILAs for property transactions are fairly common and straightforward, there are also other scenarios where someone could benefit from an ILA. This involves situations where a party takes on personal risk without benefiting from a transaction, such as a personal guarantee.

It also applies to situations where there is a conflict of interest or an imbalance in power. Here, ILA ensures that the individual taking on the liability is doing so free from duress or coercive influence. This also builds trust between lenders and borrowers, paving the way for binding and enforceable agreements.

In this article, we explore who needs an ILA and how it can prevent costly mistakes.

What Is Independent Legal Advice & Why Is It Required?

Standard legal advice or counsel can be provided by a solicitor you know or who is acting for another party. However, for ILA, it’s important to ensure that the advice you receive is impartial, fair and objective. As a result, ILA is obtained from an independent lawyer who is not involved in the transaction, has no conflicts of interest, and is obligated to protect your best interests.

This approach is well supported by the landmark case RBS v Etridge (2) [2001], where the court established that receiving ILA is recommended where claims of undue influence are involved. It’s a mechanism that allows a lender to discharge their duty of care while strengthening the enforceability of an agreement.

Who Needs Independent Legal Advice? Key Situations Explained

There are several scenarios where ILA is a common requirement, such as when an individual is taking on personal liability or risk for someone else’s benefit. Below, we discuss key situations that explain who needs an ILA and when independent legal advice is required.

Transfer of Equity: Individuals considering the transfer of ownership, especially in cases of legal separation or divorce, commonly benefit from ILA.

Settlement Agreements: In employment law, ILA or advice from a relevant independent adviser plays a significant role in ensuring that employees understand the rights they’re waiving in favour of payout.

Personal Guarantees: For directors or business owners taking a personal guarantee, ILA can help them understand their risks and the impact it would have on their assets.

Joint Borrower Sole Proprietor Mortgages: ILA can help when an individual is living in a property but isn’t named on the mortgage deed. It allows them to understand the consequences of waiving their right to stay in the property if a lender needs to repossess it.

At iLA, we provide digital ILA consultations for all matters of property and finance. Our award-winning services are quick, free and hassle-free, helping you receive clarity when it matters the most. Schedule an appointment with iLA today.

How ILA Protects Individuals in Property and Finance Agreements

Are you being pressured by a business partner or a family member into making a bad deal? This is considered 'undue influence,' and an individual can benefit from independent legal advice in such cases. This clarifies in plain English the full extent of liabilities involved if a business fails or a home is seized as part of enforcing an agreement.

ILA for property transactions is important, as it addresses onerous clauses that carry significant financial exposure and impose restrictions beyond what one can reasonably expect. This is particularly the case where mortgage-related documents, security arrangements or commercial lease agreements are involved.

ILA can protect individuals who are part of property and finance transactions by ensuring that they’re entering into agreements fully informed of their obligations and that any commitments are made freely.

When to Seek an ILA Solicitor and What to Expect From the Process

If a lender or a conveyancer has requested ILA, it’s best to promptly book an appointment with an online iLA provider who can make the whole process simple and hassle-free. The process is quite streamlined, allowing you to receive ILA quickly, sometimes in a matter of a few hours from the time you schedule an appointment, based on urgency.

Here’s what you can expect

Step 1: Schedule your appointment

Step 2: Choose a fixed pricing plan based on urgency

Step 3: Submit all documents and provide ID proof

Step 4: A Video consultation will then be carried out, where each clause in the document will be explained clearly.

Step 5: The solicitor signs the ILA certificate and sends it to the lender, where the transaction or deal then proceeds.

Choose iLA for Professional Independent Legal Advice

Considering ILA for property transactions to make an informed decision? Speak to our expert solicitors for compliant advice on legal charges and lender requirements.

At iLA, we provide swift, tailored advice, backed by expertise and experience. We’re the UK’s leading independent legal advice (ILA) providers, offering expertise in property and finance areas.

From development finance and personal guarantees to gifting and inheritance and transfer of equity, we’ve got you covered. We offer you a fully digitalised process, making our ILA convenient and accessible.

You can easily book an appointment with us and arrange for an online video call consultation from the comfort of your office or home. We offer a no-fuss, fully transparent pricing model based on your urgency, which is disclosed to you upfront.

Ready to receive clarity and protect yourself from unexpected liability? Call us today.

The information in this blog is general in nature. It is not intended as legal or financial advice. You should always obtain professional advice before making decisions based on your own circumstances.