If you’ve been asked to sign an occupier consent form, you might be wondering what this is, and whether you should sign it. In this blog, we’ll cover what you need to know.
What is an occupier consent form?
This form is used when a property is being sold and someone over the age of 18, who is not the legal owner, will still be living in it. The form is sometimes used by mortgage lenders, who need the signature to ensure that these tenants will vacate the property in the instance of a mortgage default and a property repossession.
By signing this form, you waive your right to occupy the house or flat. This is because a person aged 18 or above who lives in a property might have a legal interest in it, and could later claim to have the right to continue to occupy it. Without the completed form, this would make it very difficult for the lender to successfully repossess the property if required.
What is a beneficial interest in a property?
What are the benefits of the occupier consent form?
The form basically exists to protect the lender from any adult living at the property who might make a legal claim that they are rightfully able to continue their occupation. This could prevent a repossession if the mortgage on the property is not paid.
Are there any downsides to the occupier consent form?
There aren’t downsides from the lender’s perspective. However, from the occupier’s perspective, it takes away the potential for a future legal right of occupation if the property becomes under dispute and subject to an enforced repossession from the lender.
The individual should always seek legal advice from a solicitor such as https://www.samconveyancing.co.uk/news/conveyancing/occupier-consent-form-what-does-your-mortgage-lender-need-6019 before they sign the occupier consent form. This is for their benefit as it is very important that they understand the detailed implications of signing the document.
What if I don’t want to sign an occupier consent form?
If any adult living at the property refuses to sign this form, the lender may not go ahead with the mortgage. When individuals do sign it, the mortgage advisor will require them to seek legal advice, so that they are fully clear on the implications of signing it, and understand that they cannot allege later down the line that their signature was given under duress or unwittingly.
As with any legal document, independent legal advice should be sought before signing.
