Why do I need independent legal advice?
The third-party formality is required to protect you from entering into any form of loan agreement (bridging or otherwise) without knowing the potential risks involved (for example, the duration of the agreement, the repayment terms and the consequences if repayments are not maintained). iLA’s independent advisor will ensure that you are not being “induced” (persuaded or convinced) into the transaction and that you understand what it is you are agreeing to (your obligations and associated risks).
Common uses for a bridging loan are:
- Purchasing a property before you have sold your existing one
- Buying a property at auction
- Paying for renovations
- Buy land for development - to cover the costs between purchasing and building on the loan
- Buying an uninhabitable property - to cover the costs until you get a mortgage (which may be once the works are complete).
Bridging loans are specialist which most generalist lawyers simply won’t be familiar with or understand to a level adequate enough to be able to properly advise you on the agreement and any adverse risks. The bank or specialist lender will want you to obtain ILA to ensure that you do understand what it is you are agreeing to and the associated risks, and so you cannot at a later date claim that you did not understand the bridging facility.
How can you help?
Our dedicated team is here to make sure that you do not experience any delays or inconvenience and, by using our decades of expertise helping clients with banking, finance and property matters, and deploying leading technology, we can deliver the ILA need in the most fast, efficient and cost effective way