An Occupier Consent Form can be known as a Deed of Consent, Deed of Postponement, Consent to Mortgage, or an Occupier’s Waiver Form.
What is an Occupier Consent Form?
An Occupier Consent Form may be required when there is a mortgage in place on a property, and when there is an adult occupier living in, or intending to live in the property. A mortgage lender may request an Occupier Consent Form before they offer any final mortgage agreement.
You should always inform your mortgage lender immediately if someone else will be residing at the property. This may include an unmarried couple, where one person chooses to reside with the other in a property that is legally registered in one name only.
If an adult occupier resides at the property, and they are neither a registered owner nor a tenant, then they may be asked to sign an Occupier Consent Form by the mortgage lender.
The purpose of the Occupier Consent Form is so that the lender is not hindered in the circumstances of any breach of the mortgage agreement. This allows the mortgage lender to remedy any infringement of the terms of the mortgage without an occupier other than the registered owner interfering.
Even though an occupier may not be a registered owner, they do have rights and may be considered a beneficial owner, especially if they are contributing to household costs and bills. A beneficial owner is someone who enjoys the benefits of being an owner, without legally being a registered owner By signing an Occupier Consent Form, they are effectively waiving these rights.
Do you need to use a solicitor?
When accepting an Occupier Consent Form, many lenders require a submission from a specialist that the full rights of the occupier and any implications from signing have been fully explained to the client before they will proceed with a mortgage offer.
A specialist conveyancer or legal services provider can detail in writing how they have provided independent legal advice, warned the client of the risks, received confirmation that the client wishes to sign and proceed, and were satisfied that the client understood their obligations.
Likewise, a specialist conveyancer or legal services provider can also assist with the drafting of an Occupier Consent Form on behalf of the lender.
For more details of specialist services such as Occupier Consent Forms, visit https://www.samconveyancing.co.uk/news/conveyancing/occupier-consent-form-what-does-your-mortgage-lender-need-6019.
Since an Occupier Consent Form involves waiving rights to a property, independent legal advice should always be sought. In the event of a dispute, an occupier may be rendered homeless, and it should be fully understood that this is one of the implications.
