The term Independent Legal Advice (‘ILA’) is unbiased and unprejudiced advice given by a solicitor who is not in any way connected to the parties involved in a legal matter or transaction. ILA is required in order to protect the party deemed as not benefiting from the transaction, making sure that they understand the risks of being part of the transaction without undue influence before signing any binding documentation. Therefore, it is vital that you seek ILA before signing any documentations.

Please note that the information contained within this article are not to be considered as legal advice provided to you, but only for the general understanding. If you do require independent legal advice, please contact us at Carter Bond Solicitors. We have a dedicated ILA team to you provide you with Independent Legal Advice.

Can I cancel or transfer my obligations/responsibilities as a personal guarantor?

A Guarantor may not assign any of their rights or obligations and may not transfer any of their obligations under a Guarantee document or enter into any transaction which would result in any of those obligations being transferred to another person.

A Guarantor can only cancel or transfer their rights and obligations under a guarantee upon the written consent of the lender.

Do I have to sign an Occupier’s Consent Waiver Form or is this voluntary?

Where it is a condition imposed by the lender in order to grant the loan, then the occupier will need to seek independent legal advice in order to understand the risks and then sign the occupier’s consent waiver form to meet the requirement of the lender.

occupier’s consent waiver form is required because even where an occupier is not the proprietor of a property, they can obtain a legal interest in that property which may be a concern to a lender in the event that there is a default in payment.

Can I get out of a Corporate Guarantee should the business become insolvent?

No – you should be prepared for the real risks you are taking on, hence the necessity for independent legal advice.

What happens if a Joint Borrower dies in a ‘Joint Borrower Sole Proprietor Mortgage’?

The liabilities of the deceased party may be passed onto their estate. The surviving borrower and the estate of the deceased will be liable for the outstanding debt until paid off.

Will a Legal Charge be automatically taken off when the debt has been paid off?

An application will have to be submitted to the Land Registry to take off the legal charge over the property in question. You may have to pay legal fees. 

If I gift funds towards a deposit of a property, can I acquire rights and interest in that property?

As the gifter, you will be agreeing that any present or future rights or interests (if any) which you may have or acquire over or in respect of the property or the proceeds of sale of the Property shall be postponed and made subject to rights, interests and remedies of the lender.

Can I have someone else in the room during my Independent Legal Advice meeting?

No – You have to be alone in the room with the advising Solicitor if the meeting is done face-to-face. You will have to be alone in a room when being advised by your advising Solicitor if the meeting is done via video call.