Consent to Mortgage - Have I just shot myself in the foot?

Thrugelmir

davidmcn wrote: »

I suspect the only thing the OP has signed away is the right to occupy the property if the lender repossesses. Nothing to do with any claims between them and partner.

Partner and mother can do as they wish with the equity in the property. Borrow against it, divide between it between in any % they wish for example.

Yorkie1

davidmcn wrote: »

I suspect the only thing the OP has signed away is the right to occupy the property if the lender repossesses. Nothing to do with any claims between them and partner.

I agree, particularly as the OP mentions the mortgage in the title of the signed document.

Any adult occupier who is not on the mortgage is usually required to sign a document for the lender, which prevents them raising issues preventing the lender from repossessing in the event of failure to pay the mortgage.

Any other issues between the OP and those on the mortgage, might arise anyway irrespective of whether the OP signed that particular document for the lender.

Thrugelmir

Yorkie1 wrote: »

Any adult occupier who is not on the mortgage is usually required to sign a document for the lender, which prevents them raising issues preventing the lender from repossessing in the event of failure to pay the mortgage.

No right to remain in occupancy.

holidayhippo

So the document would only effect me if the property was repossessed?

But I would be covered if say we split up?

I have been thinking maybe have the mortgage come out of my sole account opposed to our joint account, perhaps then I would have more of a claim if things turned south?

I know this sounds awful, just trying to think with my head rather than my heart.

Thrugelmir

holidayhippo wrote: »

But I would be covered if say we split up?

For what. You have no financial interest in the property. That's the declaration you are making to the lender from a legal standpoint.

holidayhippo

Thrugelmir wrote: »

For what. You have no financial interest in the property. That's the declaration you are making to the lender from a legal standpoint.

I will be paying half the mortgage and investing a considerable amount of money into it….

TBagpuss

The document protects the mortage company, it doesn't change the relationship between you and your partner or his mother.

What you should look to do is to have a declaration of trust drawn up with would set out the beneficial ownership of the property - your partner and his mother would then hold the property as Trustees for you and your partner, and would define the share of the property each of you owns.

As things stand you *might* have some claim against the proeprt f you were to separate, but it would ot be automatic - unless you came to agreement at that time, you would have to make an application to the court and ask the court to determine that you have an interest (based on your contribition, and your claim that there was an agreement between you. It would be your word against that of your partner and the costs of proceedings could be several thousand pounds.

A declaration of trust would also be helpful in the event of any falling out between your partner and his mum, or in the unfortunate event that anything happened to her.

If you and partner married at some point in the future,you would have more protection in the event that you subsequently separated, but the bank could still force both of you out of the property if you defaulted on the mortgage - in your case, due to the consent to mortgage and in your partner's due to the terms of the mortgage deed itself.

[Deleted User]

holidayhippo wrote: »

I will be paying half the mortgage and investing a considerable amount of money into it….

If you are not listed on the mortgage then you have no formal ownership. You can spend as much money as you like on the property, if you're not listed on the mortgage then the property is not yours. You could put together some sort of contract between yourself and your partner that states that in the event you break up you'll get £x back from the property, but that would be a legal nightmare to enforce. If you don't have such a document your partner can always claim (in the event you try court action) that you were paying rent to him, or that you had said you didn't want anything from the property -- hence not being on the mortgage.

The consent to mortgage document is because you are listed as an occupier of the property who does not have an interest in the property. That document is you waiving your right to residence in the property in the event that the owners (your partner and their mother) don't pay the mortgage. Signing that document is a formality regarding your residence, not your ownership, of which you have none.

pleasedelete

holidayhippo wrote: »

I will be paying half the mortgage and investing a considerable amount of money into it….

you wont be paying half the mortgage as it is not your mortgage. You will be making a payment to your partner which may be equivalent to half the mortgage but is not the same.

holidayhippo

Thank you for all your advice.

Before anything else happens I think I will ask in writing for a copy of the mortgage application as it was sent off with considerable notes that should have outlined what the proposed plan was.

Him and his mum buy it. When I am in secure employment I buy his mum out.

A few days after the application, when at the underwriters the mortgage advisor phoned asked for my work history and qualifications hopefully this will be recorded somewhere so it may back up any claim if the unfortunate does happen.