Co-op deed of consent FAQ

graham17_2

Hi,

I'm just in the final stages of receiving my mortgage from the co-op bank and have been asked to fill out a deed of consent if there are any over 17's living with me, which there will be.

Over the phone, I was basically told this will be her signing that she doesn't have any right to the property should I have problems repaying it. That all makes sense.

But I got the form through the post at the weekend and had a read over it last night and I'm just a bit confused, so was hoping someone could clear some points up.

- It's titled: "Deed of consent and charge in favour of the co-operative bank p.l.c."
Is this definitely the right form?

- There is no mention of other people living with me
Is that normal considering I was under the impression that's what the form is about...?

- The second point says: "You agree that any rights that you have, or may acquire, in the property or the proceeds of sale shall by virtue of this deed be postponed in our favour and shall be subject to our rights, interests and remedies under the mortgage"
Could someone please explain this and if this again is normal?

- Point 3 says: "If you have an interest or right in the property or the proceeds of sale which is not posponed under paragraph 2 then you charge to us any such estate, interest or rights as security for all money and liabilities secured or to be secured to us by the mortgage"
Again, an explanation would be greatly appreciated.

- Point 4 says: "You undertake that if the loan is made you will not assert or maintain against us as mortgagee of the property any right or interest or claim in equity or by way of overriding interest or otherwise"
Not sure what this means...

- Point 5: "You shall immediately vacate the property and give us possession to us if we notify you that we wish to exercise our right to possession of the property under the mortgage"
Does this mean they can kick me out if they feel like it???

Point 6: "You agree that we may at any time transfer, charge or otherwise dispose of our rights in this deed to any person acquiring an interest in the mortgage whether under or through us"
Can anyone explain this point?



So I was just looking for some information on this. As far as I knew this was about someone else (my fiancee) living with me and basically signing that she had no rights against the co-op, but it sounds rather different. Unless, is she meant to be signing this rather than me? It says at the top "For an occupier (or proposed occupier) of a property where a new mortgage is being granted". I'm not sure if this is referring to me, or my fiancee. If it is for my fiancee, then this form might make more sense. If it is for me, I wonder why I would be asked to sign away all these rights just because I will have someone living with me.


Any advice on this would be greatly appreciated as I want to get this signed and sent (if appropriate) asap so I can get this all finalised.

Thanks in advance,

Graham.

Dan_1976

I cant be bothered to go through point by point, sorry. But its the correct form.

If you dont pay or breach your contract you have to and the property and vacate as per the courts instructions.

They cant just boot you out when they like.

There should be a space for anybody over 17 to sign and complete.

graham17_2

Hi,

The spaces to sign are just for the name of occupier, then it has occupiers signature, as well as witness's signature.

Another page has wintess by a solicitor if we choose to do that - is that necessary? It says it is an important document and they recommend taking independent legal advice before signing it as we will be legally bound by it.

Well glad it is at least the right form, but just not sure who is to sign it and where. I would have imagined myself, as well as my fiancee, but it just has space for occupier and witness.

Thanks again,

Graham.

graham17_2

Ah, just re-read it.

The two names to fill out are:

- Name of occupier (reffered to as 'you')

- Name of borrower (reffered to as 'Borrower')

So I guess occupier would be my fiancee, and borrower would be me?

Then it gets signed by occupier and a witness. Could the witness by my mum?

Thanks,

Graham.

Radiantsoul

It is a deed of postponement.

The rights of any joint occupants are relegated below that of the mortgagee. They are entitled to be repaid from the sale of the property, to not have their rights to take possession by court order restricted by joint tenants and that they can transfer the mortgage to someone else who will retain these rights. It is not saying the co-occupier has no rights against the mortgagee, but that the mortgagee cannot be embeddedin the event of default by the joint occupier.

I think your mum would be fine as a witness.

graham17_2

Hi,

Thanks for the explanation. Clears things up now.

Have now signed it with me as the borrower and my fiancee as the occupier, with my mum as a witness. Can get that sent off and things finalised.

Hopefully get moved in soon :-)

Cheers,

Graham.

graham17_2

Hi,

I spoke to my solicitor and he obviously can't give independent advice to my fiancee.

It does say at the top to seek advice before signing it.

Is there any reason for her not to sign it? I believe it's perfectly normal as it says she has to sign it for her to stay there before they'll release the mortgage to me.

Just wondering if anyone can give me/her some advice :-) Should I go ahead and sign this and send it back to them?

Seems fine to me, but just wanted to check.

Thanks,

Graham.

Janec2

graham17 wrote: »

Hi,

I spoke to my solicitor and he obviously can't give independent advice to my fiancee.

It does say at the top to seek advice before signing it.

Is there any reason for her not to sign it? I believe it's perfectly normal as it says she has to sign it for her to stay there before they'll release the mortgage to me.

Just wondering if anyone can give me/her some advice :-) Should I go ahead and sign this and send it back to them?

Seems fine to me, but just wanted to check.

Thanks,

Graham.

Hi - ive just had the same thing where I had to sign as an occupier and my boyfriend is the borrower. Again my letter stated I should get legal advise - but at the end of the day , you already know exactly what it means - and your purchase cant go ahead without her signing this form. I signed my letter saying I had had legaladvice - which was in fact simply from my sister who works at a solicitors office. Its a perfectly standard form that MUST be signed for the bank to release any money.
Go ahead and get it sent off !! thats my advice
Here is a link to a thread I started when I got my letter.
http://forums.moneysavingexpert.com/showthread.html?t=1969367&highlight=

graham17_2

Hi,

Thanks for the advice :-)

I notice there is a sheet to be signed by a solicitor if you chose to seek legal advice. As I guess this isn't the case, I've just left that one blank.

At some point later, the plan is to have her added to the mortgage. I take it once that happens, this deed will be removed, or something to that effect?

Off to the post office I go.

Thanks again,

Graham.