Independent Legal Advice (ILA)

An individual client is often required to obtain independent legal advice (or “ILA”), from an independent legal adviser, in respect of their transaction documents. Usually, the solicitor, legal executive or licensed conveyancer, will provide a signed certificate stating when and where they provided the impartial advice. If a dispute arises regarding the documentation, the solicitor may be called upon to confirm that independent advice was provided and the correct process was followed.

Increasingly, some law firms don’t want to provide independent legal advice to clients, often seeing it as a hindrance, but we are happy to help.

If you have ever read through a mortgage document, you will know that the lender has serious powers in terms of what it can do if payments are not received as and when they are due. Most people, however, wouldn’t read such documents, and lenders therefore require borrowers and related parties to obtain ILA. This ensures that borrowers have a proper understanding of the risks involved with taking on the loan. The benefit to the lender is that you cannot then claim that you were never told what you were signing should a dispute arise down the line.

Much of this area of law concerning mortgages spans from the case of Royal Bank of Scotland v Etridge, following which courts agreed that borrowers for a mortgage should be advised to seek independent advice before signing documentation. This helps prevent unscrupulous family members taking advantage over vulnerable parties, as well as the risk from potentially unscrupulous lenders.

The benefit for you as an individual is that you understand the risks. It may be that following the provision of the legal advice, you choose to reconsider your banking, and perhaps seek a better arrangement elsewhere i.e. with another lender who may not require so much security for example.

Generally, so that you can speak candidly, you should be on your own for the meeting, and not accompanied by friends or family members. If you have a particular need to have someone else present, please do let us know when booking your appointment.

If you would like to find out more about what is involved with obtaining ILA, or you are ready to book an appointment, please contact our expert independent legal advisers in Hampshire. Based in Lymington in the New Forest, we provide ILA to clients across the Dorset, Wiltshire and Hampshire regions.

Increasingly, lenders are happy for ILA to be provided remotely, and where this is the case we can provide the advice remotely wherever you are based. Ask your lender, or get in touch if you are unsure.

Ben Ironmonger is Partner and head of Company and Commercial law at Scott Bailey LLP and regularly provides ILA services. As well as Ben, ILA is provided at Scott Bailey by Victoria Smalley (licensed conveyancer) and Daniel Ratcliff (legal executive).