Independent Legal Advice

Often, lenders will agree to lend a borrower money, but only if the borrower is backed by a personal guarantor. This is very common when a limited company is taking out a mortgage. In this situation, the lender will normally request that one or more of the company directors act as guarantor, enabling them to pursue the directors in their personal capacities if the borrower company should default under the loan. Most lenders will require that the personal guarantor(s) obtain ILA prior to the company drawing down the loan.  This is to ensure that the guarantors fully understand their obligation and cannot say later that they did not understand what a guarantee is.

Some lenders do offer products where you can be on the mortgage but not own the property. This is more common where a parent of partner may be helping someone for them to qualify for a mortgage. The “non owner borrower” will need to obtain independent advice. At Taylors Legal we can assist with the same.

When obtaining a mortgage, if there is another adult occupier in the property who is not being named on the mortgage or party to the mortgage and will not own the property , the lender will require that if the property is repossessed the adult occupier will leave the property and consent that any right that they may have will be postponed in favour of the lender.

The adult occupier will be required to sign a Consent Form, and by signing the form they are confirming that they will leave the property in the event of repossession and any rights they have (if any) will always be behind that of the lender.

Independent Legal Advice must be sought by any occupier of a mortgaged property who is asked to sign an Occupier’s Consent form to ensure this is the correct course of action.

A Settlement Agreement is a legally binding document which can be used to end your employment or settle a dispute between you and your employer on agreed terms. This agreement has strict requirements. One of those is that you receive independent legal advice from a qualified solicitor.

According to section 203 of the Employment Rights Act 1996, one of the conditions for a legally binding settlement agreement is:

“The employee must have received advice from a relevant independent adviser on the terms and effect of the proposed agreement and its effect on the employee’s ability to pursue that complaint or proceeding before an employment tribunal”

Employers and employees usually enter into a settlement agreement where the employer pays the employee a sum of compensation and the employee gives up their right to bring a tribunal claim or discontinues any proceedings that have been commenced. The agreement will often provide for arrangements for return of property and agree terms of a reference. Most employers will pay your legal fees.

If you have been asked to seek ILA please speak to Elliott Costa on 0208 5014959