Understanding Independent Legal Advice (ILA) When Buying a Property in Your Company’s Name
We often come across clients who are required to obtain Independent Legal Advice (ILA), particularly when purchasing a property. This requirement is especially common in situations involving
- Limited company directors
- Personal guarantees
- Occupier’s consent to mortgage
- Director mortgage guarantees
- Employment settlement agreements
In the context of buying a property through a limited company, independent legal advice is most frequently needed when a company director is asked to provide a personal guarantee.
Why is Independent Legal Advice (ILA) Required?
When a company purchases a property, the lender (e.g. a bank) often wants to secure their loan with additional protection. Since the property is owned by the company—and not the individual directors—lenders typically require the director(s) to personally guarantee the mortgage. This means:
If the company fails to repay the mortgage, the lender can pursue you personally to recover the debt.
Because this is a significant legal and financial commitment, lenders require that directors receive independent legal advice. This ensures you fully understand:
- The nature of the guarantee
- The risks involved
- Your personal liability
Independent legal advice must be provided by a solicitor who is not connected to the lender or company. After the advice is given, you’ll be asked to sign a certificate confirming that the risks and obligations were clearly explained to you.
What is a Certificate of Independent of Legal Advice?
A certificate of Independent Legal Advice is a certificate which will be issued by the solicitor confirming that the solicitor have provided you an advice on the agreement.
When Else Might You Need ILA?
Besides company-related property purchases, ILA is also commonly required for:
- Signing a personal guarantee for any loan
- Occupier’s consent to a mortgage
- Settlement agreements in employment disputes
- Signing a mortgage guarantee as a director or family member
Why Choose Asher & Tomar Solicitors for Independent Legal Advice (ILA)
At Asher & Tomar Solicitors, we understand how important it is to receive clear, reliable, and timely Independent Legal Advice (ILA), especially when dealing with significant financial or legal commitments. Whether you’re signing a personal guarantee, buying a property through your company, or entering into a settlement agreement, our experienced solicitors are here to guide you every step of the way.
We offer a professional, client-focused service with a commitment to protecting your best interests. Our solicitors take the time to explain all legal implications in plain, straightforward language, ensuring you fully understand your rights and responsibilities before signing any documents.
With years of experience in advising clients on matters such as director guarantees, occupier’s consent, and mortgage-related agreements, we’re trusted by individuals and lenders alike. We also understand the urgency often involved in these cases and offer fast-track appointments, including remote consultations when needed.
Choose Asher & Tomar Solicitors for ILA that’s efficient, thorough, and fully compliant with lender requirements. Your peace of mind is our priority.
So feel free to contact one of the leading solicitor firms in London, which has been serving since 2008.
(FAQs) – Independent Legal Advice (ILA)
1. What is Independent Legal Advice (ILA)?
Independent Legal Advice (ILA) is legal guidance provided by a qualified solicitor who explains the terms, risks, and legal implications of an agreement before you sign it. The advice is impartial and focused solely on your interests.
2. When do I need Independent Legal Advice?
You may need ILA when signing personal guarantees, mortgage documents, settlement agreements, occupier consent forms, director guarantees, or other legally binding contracts.
3. Why is Independent Legal Advice important?
ILA ensures that you fully understand your legal obligations, rights, and potential risks before entering into an agreement. It also helps prevent future disputes and protects your interests.
4. Can Independent Legal Advice be provided remotely?
Yes. Many Independent Legal Advice appointments can be conducted remotely via video call, subject to identity verification and document review requirements.
5. How long does an Independent Legal Advice appointment take?
Most ILA consultations take between 30 and 60 minutes, depending on the complexity of the document and the advice required.
6. What documents should I bring to my ILA appointment?
You should provide the relevant legal documents, proof of identity, proof of address, and any supporting paperwork related to the matter.
7. Is Independent Legal Advice legally required?
In many situations, lenders, employers, and financial institutions require proof that you have received independent legal advice before they will proceed with an agreement.
8. Can a solicitor refuse to provide Independent Legal Advice?
Yes. A solicitor may decline if there is a conflict of interest, insufficient time to review the documents, or concerns that you do not fully understand the agreement.
9. How much does Independent Legal Advice cost?
The cost varies depending on the complexity of the matter. Fixed-fee options are often available for standard ILA services.
10. Why choose Asher & Tomar Solicitors for Independent Legal Advice?
Asher & Tomar Solicitors provide clear, professional, and impartial Independent Legal Advice, ensuring clients understand their legal position and can make informed decisions with confidence.
