Lending & Mortgage Transactions

LENDING & MORTGAGE TRANSACTIONS – INDEPENDENT LEGAL ADVICE

Common Scenarios We Provide ILAs for:

  • Director’s Personal Guarantees (on corporate loans and mortgages)
  • Personal Guarantees (where a person guarantees repayment of a loan made to someone else)
  • 3rd Party Legal Mortgages (where the borrower is not the person offering the lender security)
  • Joint Mortgage Sole Proprietor Mortgage                                                                                                     (Two people take the loan but one person becomes the legal owner of the property)
  • Transfer of Equity (where one party is giving up equity to another or granting equity to another)
  • Springboard Mortgages                                                                                                                                      (where a family member is providing a deposit to enable a first mortgage)
  • Deed of Indemnity & Subrogation                                                                                                          (Documents for lenders or between two parties to protect one party from liability)
  • ID 1 Forms (Detailed Identity Verification Checks)
  • Sureties& Guarantors (Required by lenders for some transactions)
Obinna Baranta

Obinna Baranta

Solicitor

Mortgage Lenders usually require a Guarantor/Surety in a mortgage/loan to obtain Independent Legal Advice before the Guarantee/Surety becomes acceptable.

Unless you have seen a solicitor, who is qualified to advise on the law and practical implications of your signature on the relevant forms banks may not be sufficiently satisfied that the proposed lending is safe.

Aside from the banks, it is important for you to understand the real benefits and the risks of the proposed consent or assurance you are offering to the bank.

Whether you are taking these steps for your company, your spouse, your partner, your child, your parents, your friend or some other relative, the important thing is that you are well informed and confident about your obligations.

The language, content and effect of guarantee, surety, indemnity and consent forms are various.

The extent of the liability set out in each is usually different.

Our firm’s role is to advise and assist you on the extent of liability that will arise from your signature of the relevant document.

Usually a person who has received independent legal advice will find it difficult to dispute or challenge the guarantee or surety that was signed by the person after receiving independent legal advice.

This is why our solicitors take time to explain the proposed transaction in simple non-technical language.

Lender’s terms, such as: constructive notice; undue influence; vacant possession will be explained by an experienced solicitor.

  • Proof of Identity and proof of address of the person that requires ILA
  • Information about the borrower and our client’s (guarantor/surety’s) relationship to the borrower may also be relevant to enable us provide appropriate legal advice.
  • Our client’s reason for giving the guarantee or surety may also help us to provide appropriate advice. (You as our client, have every right to make your own decisions and you may choose any options for a variety of personal reasons. We are not financial advisers, however information about your reasons may raise a legal point that our advice can cover for you).
  • Some background and context of the transaction for which mortgage/loan is taken.
  • Documents and details of mortgage/loan transaction such as mortgage offer/loan agreement; special conditions documents for mortgages; terms & conditions; mortgage deed; deed of guarantee; other supporting documents.
  • Name, telephone number and address of the Solicitors dealing with the relevant mortgage or loan transaction.

If additional documents are required, please provide this promptly to enable our service to you.

Independent Legal Advice Fees for Mortgage & Loan Transactions:

We charge a fixed fee of

£175 per Director plus VAT (£210.00 total cost).

£150 for two Directors plus VAT (£180.00 total cost).

£120 per person plus VAT for more than two Directors.

This fee covers, the cost of our attendance, the provision of independent legal advice and our acting as a witness of client signature of the same document.

If there are additional persons to advice such as additional Directors of a Company or additional Occupiers of a Property or additional Transferees of Title then our fee for additional clients in the same transaction £150 plus VAT per person.

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