Independent Legal Advice
If you are a small owner-managed business or property developer seeking to borrow funds you may be doing this with the support of the owner and/or your spouse or partner.
This may take the form of a personal guarantee, or a second charge upon your family home. The lender will almost certainly require your guarantor or chargee to take Independent Legal Advice upon the additional security they are providing, from a solicitor.
Solicitors are often reluctant to give this advice. Any hold-up in obtaining the advice, often sought at the last minute, can cause delay, stress and additional costs – sometimes even the loss of your funding. You can find out more about this, in this article from The Guardian.
The solution is to approach a solicitor early in the process, and, critically, to ensure that that solicitor is willing and able to give the advice in a timely, friendly and cost effective manner.
Our colleague Gary Player is able to provide any Independent Legal Advice required for a fixed fee. He has over 20 years’ experience of providing such advice, and of dealing with lenders. He understands their, and their solicitors requirements, as well as yours, the brokers and the clients. This depth of experience removes the potential hassle and delay out of navigating through the process.
Giving the Advice
- This is done at a one to one meeting.
- Advice will be given verbally, and confirmed in writing.
- The documents will be signed and witnessed and provided to the lender.
‘Independent Legal Advice’ means impartial advice provided by an independent solicitor to a person, without any conflict of duty or interest and provided in the best interest of that person. The client does have a choice on whether to sign the relevant document or deed (e.g.: charge/guarantee or consent to mortgage etc.) with the decision being solely up to the client.
You will need to ensure that you provide all necessary information, including:
- Identification documents, your passport/driving licence and a utility bill/bank statement from the last 3 months.
- All the documents, including the loan agreement and charge as well as the guarantee documentation.
- The relationship between borrower/lender and guarantor.
We may ask for additional information based on the information we receive.
Examples of cases where we have provided Independent Legal Advice
- Personal Guarantees. Where a limited company is taking out a loan or mortgage from the bank or a lender, and the lender requires a personal guarantee from a director or shareholder.
- Second Charge. Where a limited company is taking out a loan or mortgage from the bank or a lender and the lender requires a second charge from a director or shareholder against their home or other personal property.
- Occupier’s Consent. Where an occupier, aged over 18, lives at a property but does not own it, and is asked to obtain advice before confirming they have no interest in the property.