Why do you need Independent Legal Advice?
It is important to note that all legal advice should be independent. The reason you need further independent advice is when you are completing a joint transaction where you both want the same transaction to complete, however you have potentially conflicting interests that need further explanation in order to help you fully understand the implications on you individually when the transaction completes.
In conveyancing transaction, once the ILA has been provided, the solicitor issues a Certificate of Independent Legal Advice to the acting solicitor for the transaction or directly to the mortgage lender.
ILA example - Transfer of Equity
John and Mary jointly own a property and they are separating so only John will own the property. Although the transaction to transfer the property from John and Mary to John solely is the end result for both, Mary will be advised to seek separate Legal Advice so that she is has legal advice from a solicitor who is acting solely in Mary's best interests. This advice could include explaining that Mary will no longer be a legal owner of the property, or support in understanding how much Mary is to be paid for her share of the property and whether this equates to her.
ILA example - Joint Mortgage Sole Proprietor ('JMSP') Mortgage Condition
With a JMSP mortgage product up to four people can be on the mortgage deed however the legal owners of the property may comprise only some of those on the mortgage. It is a required legal advice mortgage product often used by parents helping their children buy their first home as the child's salary combined with their parent's salaries makes the mortgage product more affordable.
For this type of mortgage product, the mortgage lender will always require the party/ies who are liable for the mortgage, but who aren't legal owners to seek legal advice.
The instruction from the bank 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."
The legal advisor will then complete a Certificate of Independent Legal Advice which will 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".
Frequently Asked Questions
Independent legal advice near me or online?
Independent advice always used to be completed physically face to face in the solicitor's offices because the advisor needs to verify that the person they are providing the advice to is independent and to the appropriate person. With advances in technology, forward thinking legal advisors can now provide legal advice adopting other face to face means, such as Skype or face time*.
Using Skype, the solicitor will identify the client they are giving legal advice to via a visual review of the client's passport or driving licence; a digital copy of this is also stored. The client will also need to be alone in the room at the time of the meeting.
Not all solicitors adopt this type of technology so make sure to check as you may be forced to work with a local solicitor if you can find one who is able to help.
Does the meeting have to be face to face?
Part of the solicitor's job is to check that the party getting the legal advice is doing so without undue influence and they were not misled as to its nature or the implications of signing it (the mortgage deed). In order to do this they must:
- compare the person they are speaking to the photo ID (such as a passport or driving licence)
- ensure the person is on their own and not being influenced
Nowadays a the majority of mortgage lenders allow for a face to face meeting to take place via video conferencing such as Skype or Zoom.
Who can provide Legal Advice?
The requirements vary depending on the ILA, however the solicitor will most commonly be a practising Solicitor, Licensed Conveyancer or a Fellow of the Institute of Legal Executives. They might well be a specialist solicitor.
Cheap independent legal services?
Quotes for £180 INC VAT often only offer a 15 minute meeting and for extra time you are charged more. With this mortgage product you'll need more than 15 minutes to talk to your solicitor to make sure you fully understand the mortgage terms, future risks and what you can do to protect yourself. Read how rushing an ILA meeting caused the client to lose their home - Royal Bank of Scotland Plc v Etridge. This case changed how solicitors provide legal advice and the detailed advice they need to provide.
Our solicitor offers a full 1 hour to answer all your questions and uses her extensive knowledge to explain the small print in the mortgage lender's terms that you may not know and we do this for one fixed price, with a 5 star Excellent rating on Trustpilot. You may find a solicitor to offer cheap legal advice however with the personal risk you are taking on through the transaction it is better to pay a reasonable fee and get a quality service spending the time to answer all of the questions you have.
Free independent legal advice?
Most clients were never told that they needed to get advice and of course would like free advice. For some they may even feel the process to be a 'form filling exercise'. For the solicitor providing the legal advice, the risk is too great to offer free legal services and they are also duty bound to charge a fee for the legal advice they provide.
