Our solicitors provide independent legal advice for third-party legal charges where lenders require confirmation that an individual fully understands the legal risks of providing security over their property for someone else’s borrowing.
A third-party legal charge arises where you agree to use your property as security for a loan taken out by another person or business. This commonly occurs where a parent, spouse, director, or third party is asked to support borrowing without directly receiving the loan.
Because this arrangement can expose your property to repossession or enforcement, lenders usually require Independent Legal Advice (ILA) to ensure that you fully understand the risks and legal implications before signing.
Why Independent Legal Advice Is Required for a Third-Party Legal Charge
Independent Legal Advice is required to ensure that anyone providing security for another person’s borrowing fully understands the consequences of the arrangement.
A solicitor must ensure that you:
- Understand that your property is being used as security
- Are aware of the risk of repossession if the borrower defaults
- Understand that you may not receive any direct benefit from the loan
- Are entering into the agreement freely and without pressure
This is particularly important in situations involving family members, spouses, or business relationships where there may be a risk of undue influence.
Once advice has been provided, the solicitor will issue the confirmation or certificate required by the lender before the transaction can proceed.
Our Third-Party Legal Charge Independent Legal Advice Service
Our solicitors regularly advise individuals who are asked to provide security for loans or financial arrangements involving third parties.
During your appointment, we will:
- Review the legal charge and supporting documentation
- Explain the legal implications and risks in clear terms
- Confirm your understanding of your obligations and exposure
- Answer any questions you may have before signing
Appointments are available in person at our office or remotely via secure video call (Zoom). Where transactions are urgent, we may also be able to offer same-day appointments to avoid delays. Once the advice has been completed, we will issue the solicitor’s confirmation required by your lender or their solicitors.