If an adult who is not a part-legal owner of your property is residing at your home, they will be required by your mortgage lender to sign a consent form. This form is designed to protect the lender from the person who is not the legal owner from making a claim of right of occupation, should property repossession occur as a result of falling into mortgage arrears.
The lender may refuse to proceed with the mortgage
This form will be given to all adult occupiers who are not named on the mortgage documents and they will be expected to sign it. The occupier must agree that they acknowledge that they are unable to make a claim over the property. Often, mortgage lenders will request that the person who is aged over 18 signs the form to confirm they will exit the property if repossession goes ahead. The occupier should, of course, seek legal advice before signing the form to fully understand their rights and the position they are in. The lender may refuse to proceed with the mortgage if the occupier declines to sign the consent form, and this is an important point to bear in mind.
Independent legal advice should be sought
The house market remains buoyant, despite Brexit and the recent pandemic, and according to The Guardian homebuyers are being offered mortgages with interest rates as low as 1% for the first time in almost four years. Experts say this trend could continue with rates falling even further and this is welcome news for home purchasers, and especially those looking to get a foot on the property ladder.
Filling in a consent form is usually a mandatory part of the home purchasing process, and should not be overlooked. More assistance with home-buying, conveyancing and other professional services related to property can be obtained from a range of professionals including sam con.
Mortgage lenders of course must be able to demonstrate that an occupier signing such a form was aware of the implications, otherwise it may be deemed as ineffective by a court of law. Lenders are under obligation to ensure there are no other adults living at the mortgaged home, apart from the borrowers, and if there are, these adults should have the appropriate documentation signed.
With that in mind if you are thinking of co-habiting with other adults, independent legal advice should be sought from a solicitor or other legal professional. However, if independent advice has not been given as part of the process, then the mortgage lender could end up in an unfortunate position where it cannot repossess the home where the additional adult is living.
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