Independent Legal Advice

INDEPENDENT LEGAL ADVICE

Providing Independent Legal Advice for Mortgage and Loan Transactions to Businesses and Individuals in Medway and Kent.

If a mortgage or loan transaction requires personal guarantees, or includes third-party security or non-borrowing parties, Independent Legal Advice (‘ILA’) is required by most lenders before funds are authorised.  This advice ensures that guarantors, third parties, and non-borrower occupiers are fully aware of the risks, responsibilities, and legal consequences involved before the transaction is completed. The process reduces the likelihood of later claims of undue influence/pressure.

We suggest obtaining Independent Legal Advice as soon as practicable to avoid delays to the lenders releasing funds.

Independent Legal Advice Offered by Bassets Solicitors
Bassets Solicitors routinely provides expert guidance for businesses and individuals across the Medway Towns and Kent. They clearly explain why you require an ILA and what it involves. After the meeting, supplying Independent Legal Advice Certificates or Confirmations in the format specified by your lender, ensuring compliance with lender requirements. Learn more about these matters further down the page.

  • Personal Guarantees for Directors
  • Third Party Legal Charges over Properties
  • Non-Borrower Owner Liability
  • Joint Borrower, Sole Proprietor
  • Occupiers Consent Form / Occupiers Waiver Form
  • Dead of Postponement
  • Consent to Mortgage

SETTLEMENT AGREEMENTS
This page addresses Independent Legal Advice for property matters and loan transactions. For advice on Employment Settlement Agreements, please contact us on 01634 575464 and ask for Loretta.

Why do I need a Solicitor?
Only a qualified professional such as Solicitor can provide independent legal advice. We ensure you receive clear, expert, impartial advice, based on your situation.  Depending on your circumstances, Bassets Solicitors will explain:

  • The legal effect of the documents
  • What rights exist under the law
  • Enforcement rights available to the Lender
  • Any joint and several liability
  • Undue pressure
  • The extent of personal liability i.e. your own home could be at risk
  • The consequences of signing the documentation i.e. requirement to vacate the property.

We will provide a signed certificate confirming you have received Independent Legal Advice.

To speak to someone today, call our office today on 01634 400161

Personal Guarantees for Directors, Business Borrowing
Companies can buy property and register ownership at the Land Registry in the Company Name. Lenders typically mandate that Company Director(s) personally guarantee any mortgage. This means lenders typically require an Independent Legal Advice Certificate. Which serves to ensure that you understand the risks and implications of giving personal guarantees, Typically, this is a requirement before the lender releases any funds.

Third Party Legal Charges over Property
Often referred to as a Legal Charge. This type of property transaction occurs when a property owner secures a loan or property for someone else, such as a child, and uses their own property as collateral. Should payments be defaulted, lenders have the right to take possession and force a sale or your home/property.

Non-Borrowing Owner Liabilities
An individual named on property Title Deeds (Owner) but not named on the mortgage is a Non-Borrowing Owner. For example, a married couple may jointly own the property, but only one of them takes out a mortgage.

If you are the Non-Borrowing Owner, you must seek separate Independent Legal Advice. This is to ensure you understand the risks involved, and what it means should the Borrowing partner/Owner default on the mortgage repayments. Lenders require a certificate to confirm the advice given.

Joint Borrower Sole Proprietor
A Joint Borrower Sole Proprietor (JBSP) loan, is a type of mortgage where only one individual owns the property, but two or more individuals have jointly applied for the loan and are both responsible for its repayments.

As the non-owner you will be responsible for paying back the loan but not legally entitled to live in the property or to receive any equity from its sale.  It is important that you understand the financial risks, legal and personal implications before entering this arrangement.

Occupiers Consent Form/ Occupiers Waiver Form
You may be asked to sign an Occupiers Consent Form/Waiver Form if you live in a property but are not the legal owner, or named on the mortgage. Should the legal owner default on loan repayments this will entitle the Lender to enforce their rights.  Ultimately this could end in the Lender taking possession, forcing a sale, and requiring you to leave.

Deed of Postponement
A Deed of Postponement is used when you wish to register an additional priority Legal Charge on your property.

A Deed of Postponement and Independent Legal Advice must be sought to confirm that the Lender (or holder of a Legal Charge) agrees to rank their security (i.e. a previously registered mortgage) below a new incoming Lender (or holder of a Legal Charge). Therefore, the new loan/charge, in the event of repossession, will be paid before the original loan/charge.

A Deed of Postponement may also be requested in circumstances involving Occupier Waiver forms and Director’s Guarantees.

Consent to Mortgage
This documentation involves a Non-Owning Occupier (Resident) acknowledging the mortgage and consents/agrees to defer their rights of occupation in favour of the lender.

By signing, you cannot stay in the property if its repossessed. Always seek advice from our solicitors before deferring your rights.

Our Independent Legal Advice Team
Adam and Steph, both Partners and LLP Members, specialise in providing Independent Legal Advice in property transactions.

They act solely for you and will clearly outline the risks and consequences before you sign the lender’s documents.

Get in touch today.
You can book a face-to-face meeting at either our Rochester or Gillingham office.

For appointments with Adam contact Deanne on 01634 400 161 or email deanne.gething@bassetssolicitors.co.uk.

Make an appointment with Claire to see Steph on 01634 575 464 or email claire.skinner@bassetssolicitors.co.uk

After the meeting, Adam or Steph will complete any necessary Certificates or Confirmations. They will use the format as required by your lender.

We are unable provide guidance if another Bassets colleague is working on your transaction, for example the conveyancing.

Bassets Solicitors – Providing Independent Legal Advice for Mortgage and Loan Transactions for Medway and Kent. Covering Rochester, Gillingham, Strood, Rainham, Gravesend, Dartford, Sittingbourne and Maidstone.