Our solicitors provide independent legal advice for transactions at undervalue where lenders or conveyancing solicitors require confirmation that a person transferring property below market value fully understands the legal implications of the transaction.
A transaction at undervalue occurs when a property or asset is transferred for less than its full market value, including where property is gifted or sold at a significant discount. These arrangements commonly arise between family members but can carry important legal and financial risks.
Because such transactions may be subject to scrutiny, particularly in cases involving future insolvency or creditor claims, lenders and solicitors often require the transferring party to obtain Independent Legal Advice (ILA) before the transaction can proceed.
Why Independent Legal Advice Is Required for a Transaction at Undervalue
Independent Legal Advice is required to ensure that the person entering into the transaction fully understands the risks and consequences of transferring property at less than market value.
A solicitor must ensure that you:
- Understand the potential risk of the transaction being challenged by creditors
- Are aware of possible implications under insolvency law
- Understand how the transfer may affect future dealings with the property
- Are entering into the transaction freely and without pressure
This process helps ensure that the transaction is carried out with full understanding and reduces the risk of future disputes or legal challenges.
Once advice has been provided, the solicitor will issue the confirmation or certificate required by the lender or conveyancer.
Our Independent Legal Advice Service for Transactions at Undervalue
Our solicitors regularly advise individuals who are transferring property or assets at less than market value.
During your appointment, we will:
- Review the transfer documentation and transaction details
- Explain the legal implications and associated risks
- Highlight any issues that may affect the validity of the transaction
- Answer any questions you may have before proceeding
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 conveyancing solicitor.