Can a solicitor draw up a loan agreement?

A solicitor can draw up a loan agreement. In fact, you should always have a solicitor draw up your loan agreement. If you draft your own agreement without the necessary legal expertise, you could end up with a contract which is open to different interpretations and may be completely unenforceable, even if you use a template you find online. We can draft you a simple, enforceable loan agreement for a fixed fee, or tailor a bespoke agreement to your needs at our hourly rate. Find Out More

What is proof of independent legal advice?

Sometimes when you are signing an agreement, you will be required to obtain proof of independent legal advice. The advice is required to make sure you understand the implications of the terms you are agreeing to. Proof is usually provided in the form of a 'Certificate of Independent Legal Advice', signed by the advising solicitor, to confirm they have explained the relevant advice to you and that they believe you understand and are agreeing of your own free will.

Is independent legal advice mandatory?

Independent legal advice is often mandatory as a requirement of a Lender. This helps to make sure that the loan agreement is enforceable, as it means the borrower would struggle to claim that they didn't understand the terms, if they try to dispute them later. Occasionally the borrower will have the loan agreement drafted by their own solicitor. In which case the lender would need to get Independent legal advice, as the solicitor who drafted the agreement will be acting in the interest of the borrower and an independent legal professional must review the agreement, in the interest of the other party. They will be able to spot and advise the lender on any unfavourable terms, to ensure they understand their implications and can choose whether to refuse or renegotiate the agreement.

Does a guarantor have to get independent legal advice?

Most commercial lenders will require a guarantor to receive independent legal advice. This is because they are taking on the liability (risk) but not the benefit of the loan. For a solicitor to provide 'independent' legal advice to the guarantor, they must not be acting for the lender or the borrower.

Independent Legal Advice | Loan Agreement

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thelegalteam@parachutelaw.co.uk

0207 183 4547

Why do I need Independent Legal Advice on a Loan Agreement?

The borrower and the lender might agree on their intentions for the loan, but they each have independent interests. The solicitor who drafts your loan agreement will be acting in the interest of their client, whether they are the borrower or the lender. It is best for the other party to instruct their own solicitor, to act in their own interest.

We will review the loan agreement and provide Independent Legal Advice, to ensure that you fully understand the risks and implications of the agreement, in your own best interest. This will flag any aspect of the terms which are unfavourable to you, in case you would prefer to renegotiate or refuse the agreement.

Book your Independent Legal Advice meeting today

Do you need the terms of a private loan agreement explained to you? We can review your loan agreement and give independent legal advice to either the lender or the borrower (but not both for the same agreement).

Our Fixed Fee is £299 INC VAT.

Short on time? We can expedite your appointment for no extra charge and use Recorded Delivery to send your certificate***.

We are currently at capacity for Loan Agreement ILA. However, we can introduce you to another law firm who we recommend for this service.

Contact us for an introduction.

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How do you instruct us?

1
Complete form above (1) provide your details, (2) attach your ID & proof of address, (3) attach loan agreement, (4) pay using PayPal, debit or credit card, (5) We'll review your instructions and email you with a booking link (6) book a time that suits using our online calendar - normally within 2 working days

2
Meeting Your meeting is via video conference and our solicitor advises you of the risks of signing the loan agreement. Our solicitor records you signing the document.

3
Send to us You send to us your signed certificate where our solicitor signs and sends to your conveyancing solicitor or back to you.

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Does your Lender accept ILA by video conference?

Some mortgage lenders will not accept independent legal advice provided by video conference. It is your responsibility to check that they will accept a signature which has been witnessed by video conference. If your certificate is refused by your mortgage lender because your independent legal advice was conducted by video conference, Parachute Law reserves the right to withhold any refund of our fees.

Which lenders can we NOT help with?

Canada Life
Foundation Home Loans
More2Life
Together Money
Together Commercial Finance Limited

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Independent Legal Advice on a Loan Agreement

Why do I need Independent Legal Advice on a Loan Agreement?

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