Independent Legal Advice - HSBC request

Love2dunk

I am taking out an HSBC homeowner loan on the home I own jointly with my husband to buy out equity held by relatives in my late Mum's house - buy to let not possible with them as I don't own 100% of the property.

After a very, very, slow, drawn out process having chosen over the phone service, we have received a mortgage offer yesterday but have been told we need to get independent legal advice for my husband as he will not be benefiting from the equity buyout - will be paying for something he won't gain from (we are aiming to rent the property out and generate income but HSBC are insisting my husband still needs the advice).

Has anyone done this recently and have any idea of the costs involved? HSBC have suggested it's usually £150-200 but local solicitors are quoting £500 + VAT - we live Maidenhead/Slough area. We have significant renovations to do to make property rentable so this would take a chunk out of what we have budgeted for repairs.

Many thanks in advance

TrickyDicky101

Your mistake was telling HSBC what you wanted the additional borrowing for.

Love2dunk

No option - they originally asked for written quotes as to what the work was for but subsequently didn't need them.

minimike2

TrickyDicky101 wrote: »

Your mistake was telling HSBC what you wanted the additional borrowing for.

No it wasn't.

I am getting fed up of people on this board with these flippant comments about not telling lenders this, don't tell them that etc etc.

Do you not think there is a reason why borrowers need to be 100% honest when making a loan application? Jesus wept, imagine if the lender lied to you.... "oh we just decided we wouldn't tell you that there was a £999 fee for that which we will add to the loan, but it's OK because we didn't say anything so lets just hope they don't notice".




Anyway, in regards to the OP - This is pretty standard where large sums of money are involved. In my experience around £300 - 400+VAT would be about right, however I am ooop north, so £500+ doesn't sound unreasonable. I am not sure where they get £150-£200 from but I have never seen a quote that low.

Thrugelmir

Love2dunk wrote: »

Has anyone done this recently and have any idea of the costs involved?

Keep shopping around. Perhaps a smaller practice.

densol_2

Seems rather expensive. All they need to do is explain the risks involved to your husband, get his written understanding and confirm in writing. This is to make sure he cannot " fight " a repossession application by claiming he was unaware of what you were doing. ( this was very common in the 80's - so to stop banks decided to ensure full understanding ) I would too shop around a bit more.

Love2dunk

Many thanks for the advice - we did find a local branch of a national firm who quoted £150 + VAT for the advice. I chased HSBC for the ILA paperwork daily for a week and then got a random voicemail from their mortgage centre saying the money was available for drawdown without getting the paperwork or legal advice. All very strange as to why it suddenly wasn't needed but relieved the process is over!

Thrugelmir

Love2dunk wrote: »

All very strange as to why it suddenly wasn't needed but relieved the process is over!

The advice is for your benefit not the lenders. If you choose to ignore the recommendation to seek advice you'll struggle if you subsequently start complaining.