Legal advice from an independent provider is sometimes needed as you navigate the conveyancing process. Lenders will request it to ensure they are properly protected but what sort of scenarios will prompt the requirement? Let’s take a look.
Different scenarios
There are many situations, both personal and business-related, when independent legal advice will be needed and facilitated by companies such as Sam Conveyancing. Here is a round-up of some of the most common scenarios, but the professionals involved in your conveyancing or lending should inform you when it is necessary.
Directors guarantee
Company directors will need legal advice if they want a business mortgage as lenders will want to ensure they fully understand that they will be personally liable under the guarantee to pay back funds in the event that the company defaults.
Joint mortgage sole proprietor
If you are a parent helping your child to buy property or are one of an unmarried couple where one of you owns another property, you should get legal advice to make sure you avoid stamp duty for second homes. Lenders will also want you to realise that you are at risk of being liable for any mortgage debt.
Transfer of equity.
You will need a certificate of legal advice from an independent party if you want to put your property into more than a single name or give someone a property share.
Occupier waiver form
If you are over 18 and live in a property but don’t own it, you may well be asked to sign an occupier consent or waiver form. Your independent legal advisor will explain how this will mean you waive your rights to live in the property in the event that it is repossessed. In the event that you are living in a property that is repossessed, help and advice is available from Citizens Advice.
Second charge
Lenders will want you to be professionally advised of the risks associated with being liable for a second charge or mortgage when the funds are not being used for something from which you will benefit.
Bridging loans
Bridging loans can be beneficial to allow you to take advantage of an opportunity at short notice, but professional advice is needed to ensure that you understand the way in which assets will be used as security and the fact that there are attached risks associated with this type of loan.
Deed of trust
You can get legal advice from an independent professional if you are a joint owner who needs a deed drafted or if you are being asked to sign one.
Equity release
You may be tempted by equity release to offer you funds in your retirement but you will need legal advice to ensure you understand the implications of this.
Compromise agreements or employment settlement agreements
You will need a certificate stating that you have been given independent advice before signing an employment settlement agreement to ensure that you understand the implications and any rights waived.
Choosing the right legal advice
If needed, look for professionals with a good reputation who can offer the services that you require in the timeframe that you need and at a cost that you can afford. Read more about choosing a conveyancing solicitor on the Homeowners Alliance website.
