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

Thrugelmir

holidayhippo wrote: »

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

You would in effect be paying the property owners rent.

You should be named on the mortgage as well. Then when your MIL is no longer required. Drop your MIL from the mortgage.

Yorkie1

I think it is important to look at the paperwork as you say you're going to do.

As you've said that you're putting in a substantial amount of the deposit (if I've understood you correctly), yet won't be on the mortgage, this could be relevant for the lender - sometimes they don't like the deposit coming from someone who will be an occupier yet not on the mortgage. I imagine the document you've signed counteracts this, but it does sound rather messy.

carefullycautious

:eek: you really should have got expert advice before signing anything. The only plus I can see is that if you fall out you can walk away without any obligation to pay said mortgage.

I wouldn't be putting vast amount of money into something I have no interest in.

da_rule

If you signed a Deed of Consent then you haven't signed away your ability to gain an interest in the property. There are various ways trusts in property can arise. What you have done is agreed that any interest in the property that you gain will not override the the interest of the mortgage company. This is so that should the mortgage company repossess the property they can take the money owed to them and then it is up to you, your partner and his mother (and possibly the courts) to decide how any remainder should be distributed.

kingstreet

The consent to mortgage form is nothing to do with ownership, it simply avoids you having the right to stay in the property if it is repossessed.

Signing it has not affected your rights in any way.

As has been pointed out, if you want your interests protected a few notes on the mortgage application will have no legal foundation and you need to seek independent legal advice on how best to achieve this.

You need a formal legal document called a Deed Of Trust and in it, you set out the terms on which any loss, break-even or profit is dealt with in the event of the three of you severing your "association."

poppysarah

And if asking for this deed of trust makes people react badly then assume that's how they'd react when you might have split up years down the line.