What is a personal guarantee, and where does ILA come in?
When a lender grants a mortgage to a limited company (often a special purpose vehicle set up just to hold property), the borrower is the company, not you. Companies have limited liability, so if the company defaulted the lender could normally only pursue the company's assets. To close that gap, lenders require the directors, and usually any shareholder above a threshold (commonly 20-25%), to personally guarantee the debt.
A personal guarantee is a serious commitment: if the company cannot pay, the lender can pursue you personally, and your personal assets, including your home, can be at risk. Because of that seriousness, the lender will not accept your signature on the guarantee alone. It requires evidence that a solicitor, independent of the transaction, has explained the guarantee to you and confirmed you understood it. That evidence is the ILA certificate.
Why do lenders insist on it?
The requirement protects the lender as much as you. English courts have long held that a guarantee can be challenged if the person who gave it did not truly understand it or signed under pressure, a line of cases about undue influence that culminated in Royal Bank of Scotland v Etridge. If a guarantor later persuaded a court they had not understood what they signed, the guarantee could be unenforceable.
By insisting that an independent solicitor advises you and certifies that advice, the lender makes the guarantee robust. From your side, the appointment is a genuine opportunity to have the document explained by someone whose only client in the room is you.
What happens in the ILA appointment
The solicitor will review the guarantee deed and the mortgage offer or facility letter before your meeting. In the appointment, typically 20 to 40 minutes by video call or in person, they will explain the practical effect of the guarantee: that your liability is usually joint and several (each guarantor can be pursued for the whole debt, not a share), whether the guarantee is capped or unlimited, what happens on default, and that your personal assets are exposed.
They will also check that you are signing freely, without pressure from anyone else involved. Once satisfied, the solicitor signs the certificate, usually in the exact form the lender prescribes, and you or your conveyancer return it to the lender. On a straightforward case the certificate is often signed the same day as the meeting.
The independence rule
The solicitor giving the advice must be independent of the transaction: not the firm acting for your company on the purchase, and not the lender's firm. This is exactly why ILA is awkward to arrange. Your conveyancer cannot simply do it themselves, and most landlords end up searching for a separate firm under time pressure. Solicitors listed on ILA Comparison offer ILA as a standalone service, which is precisely the gap the requirement creates.
Cost and turnaround
ILA for a personal guarantee is usually a fixed fee. Across the market, standard turnaround (up to 5 business days) typically costs £150 to £250 per person, 48-hour fast-track work £250 to £350, and 24-hour express service £350 to £500. Where two directors both need advice on the same guarantee, many firms offer a reduced fee for the second person, and both can often be advised in the same session if the lender permits it.
Most lenders now accept ILA by video call, which is faster and usually cheaper than attending an office, but a minority still require an in-person meeting or a wet-ink signature, so check your mortgage offer or ask your broker before booking.
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Compare solicitorsFrequently asked questions
Can the solicitor doing my company's conveyancing also give the ILA?
No. The whole point of the certificate is that the advice comes from a solicitor independent of the transaction, so the firm acting for your company on the purchase or remortgage cannot advise you on the guarantee. You need a separate firm, which is what ILA Comparison helps you find.
Do all directors need independent legal advice?
Usually every person giving a personal guarantee needs it, and lenders commonly require guarantees from all directors and any shareholder above roughly 20-25%. Your mortgage offer lists exactly who must be advised. Two guarantors can often be advised by the same independent firm, sometimes in one session, unless the lender requires separate advice.
Is a video call ILA certificate accepted by lenders?
Most buy-to-let and specialist lenders accept ILA given by video call, and remote appointments are usually cheaper and faster to arrange. A minority of lenders still insist on an in-person meeting. Check the wording of your mortgage offer or confirm with your broker, then filter by Remote or In-Person when comparing solicitors.
How much does ILA for a personal guarantee cost?
Typically £150 to £500 per person as a fixed fee, depending mainly on how fast you need the certificate: standard 5-day service sits around £150 to £250, 48-hour fast-track around £250 to £350, and 24-hour express around £350 to £500. Complex or high-value guarantees can cost more.
How quickly can I get the certificate?
Once the solicitor has the guarantee deed and mortgage offer, the appointment itself takes well under an hour and the certificate is often signed the same day. Firms offering express service can complete the whole process within 24 hours, which matters when a completion date is looming.
This guide is general information about how independent legal advice works in England and Wales, not legal advice on your situation. Lender requirements vary; always check your offer conditions. For advice you can rely on, speak to an SRA-regulated solicitor.