what is occupiers consent form?

daxu

Hello,
I am in the process of buying a flat. Today my solicitor emailed me saying that

"I have also requested an Occupiers Consent Form from Halifax which I will need send to you in order for the occupier to sign."

I know the general process of house buying and mortgage. But I am not sure what is occupiers consent form and what is the purpose. I emailed my solicitor back (as it is an internet one I don't really expect quick response). Can someone tell me what this form is about?

Many Thanks

wodgerdodger

Normally this form needs to be signed by anyone over the age of 17 not party to the mortgage. By so doing it gives the Lender power to evict persons not shown on the mortgage if the borrowers default.

It goes back quite some years ago when a married couple were being pursued for possesion by the Lender and the wife, not shown on the mortgage, succesfully challenged the Lender and they were unable to get her out.

The same would apply if there were teenage children in occupation.

monkey69_3

I am currently in a pickle!!

If I sign the occupiers consent form,(we are moving to a new house - and I will not be on the morgage) and then (God forbid) me and my husband seperate, have I given up any right to any entitlement of the house?

Senior_Paper_Monitor

Not strictly true - you will have placed yourself behind the mortgage lender in the distribution of assets, although you might weaken your position in any negotiation for a split of assets such 'rights' do not simply disappear, as a court (or any mediation process) would recognise contribution to the household in an enforced settlement.

Take legal advice.

sylhet

thank you for the above feed back...

orphious8017

Hi. Need some help please
I have applied for a mortgage and the Lender has ask for an Occupiers Consent form to be completed. Have read the previous strands and it makes sense If I default, but what happens if something happens to me. (as in Fatally)

kingstreet

Nothing. The consent to mortgage form merely protects the lender in the event of default and prevents an implied tenancy being created in favour of the non-mortgagor occupant.

If you purchase the property in your sole name, regardless of the consent form, the property and the mortgage become an asset and liability on your estate respectively on your death.

concerned_kate

hi , i have also been asked to sign a occupiers consent form , i understand now that is more for the protection of the mortgage company but because i am not married , if i sign this form does it allow my partner the right to kick me out of our new home, even though we have children ? please help x

kingstreet

No it has nothing to do with partners, kids, splitting up, death...

It simply allows the lender to repossess the property, enforcing the mortgage deed against all the occupiers, even if they aren't party to the mortgage on completion day.

Thrugelmir

A detailed explanation.

Explanatory Notes re Building Society/Bank "Consent" Forms

(Please read carefully before you sign the consent form)

Consent forms are required by lenders when an adult is to be in occupation of the mortgaged property, but that occupier is not a legal owner of the property.

The reason for the requirement is that it is now established law that such an occupier can acquire a legal interest in the property, despite his or her name not being on the deeds.

When a lender takes security over a property by way of a mortgage or charge, its ultimate sanction, if things go wrong, is to repossess the property and sell it on the open market with vacant possession. In 1981, in the case of Williams & Glyn's Bank -v- Boland, the Bank tried to repossess the property. Mrs Boland lived at the property, but her name was not on the deeds and she was not, therefore, a party to the Bank's mortgage. Mrs Boland applied to the Courts for relief against possession, on the basis that she had acquired an interest in the property and the Bank had no right to force her out. The Court decided in her favour, leaving the Bank with virtually no security. This sent the lending institutions into a panic and, in order to overcome the problem, the requirement for a non owning occupier to sign a consent form came about.
All lending institutions have slightly different consent forms but the effect of them is the same. By signing the form, the occupier

(a) acknowledges that the property is to be subject to the mortgage,

(b) consents to the creation of the mortgage, and

(c) agrees with the lender that any interest that the occupier might acquire in the property would come after, or rank behind, the interest of the lender.

If Mrs Boland had signed such a form, then she would not have been able, in 1981, to prevent the Bank either from obtaining possession of the property or from forcing her out
of occupation.

An occupier asked to sign a consent form has the right to seek independent legal advice before signing and, if there are any concerns or uncertainties, an occupier is advised to
seek such independent advice.

londonmania

Hi, I have just received this same form.
I am re-mortgaging with Coventry (CBS) and have come across this point: Declare Other residents (non-owning occupiers)
You must declare all non-owning occupiers aged 17 years and over at point of application.

I live with my partner since 2008. I dont know what rights she has or doesnt have and what rights the Society will or wont have over the property but If there I was ever unable to keep up with payments, she can cover the payments and lets say in case of my death, I would want her to be able to stay in the property and pay it off etc as needed.

The Legal LLP firm working for CBS has indicated that if my partner is unable to sign (as she is travelling) , it wont delay the completion due in a few weeks.

Is this decalation required by Law or is it something lenders have started doing to be able to evicit people from houses should payments not be kept etc?

Not sure how to proceed

thanks in advance for your help.
RS.