There are a number of legal factors to consider if you have adults (grown children, for example) living with you who are not part of your mortgage agreement. Lenders will generally ask you to provide an occupier consent form, which may sound daunting. Below we briefly explore what an occupier consent form does, when it needs to be signed, by whom, and why it’s an important aspect of applying for a mortgage.
What is an occupier consent form?
An occupier waiver form is also called a deed of consent or an occupier consent form. This form waives your legal rights to continue living at a property for which you are not paying the mortgage. With that said, your rights are only forfeited if the mortgage holder defaults on the mortgage payments. It’s generally a legal requirement for mortgage holders who have grown children or other adult occupants staying with them who do not contribute financially to the mortgage.
What is an occupier consent form used for?
Chiefly, it protects the lender by ensuring that nobody over the age of 16 can legally remain in a property that is the subject of repossession. This is an important aspect of the mortgage application process. There are also other legal issues to consider, such as whether a non-paying party will gain rights and ownership over the property in future. A legal adviser or conveyancing specialist is vital in these circumstances and can help you make decisions to safeguard your property in future.
When does an occupier waiver form need to be signed?
As soon as you have an adult occupant living permanently in your property without contributing financially to the repayment of the mortgage. Adult children over the age of 16 will need to sign the form, as will any parents or grandparents, or partners who aren’t on the mortgage. The reason this is so important, as we mentioned above, is that it strips these occupants of their rights to live in the property if the mortgage goes into default.
Why is a deed of consent important?
Each mortgage lender will have their own variation of an occupier consent form which they will ask the relevant parties to sign. It’s a vital part of the mortgage application process that protects the lender’s interests in the event of default and repossession. Signing such a document may seem daunting as you are essentially signing away your rights to remain in a property if someone else can no longer pay for it. However, there are certain exceptions (bereavement, for example) that may mean you won’t automatically be evicted from your home if they can no longer pay.
If you need help or advice with regard to occupier consent forms, contact your conveyancing lawyer or solicitor.
Anyone required to sign an occupier consent form will also be required to obtain independent legal advice (ILA). This requires the use of a third party solicitor who is not involved in the main property transaction and does not stand to benefit from it in any way other than the advice fee. They explain the implications of the consent in intelligible terms to the signatory. Once the advice is given, the signatory will sign a further document to confirm they have received and understood the advice.