What is an occupier consent form?

You will be asked to sign important documents when you arrange a mortgage, so it is important that you understand what you are agreeing to.

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This occupier consent form is a legal document that you may need to get drawn up by a legal professional when you are making arrangements for your mortgage. This documents all the occupiers of a property who are not a party to the mortgage and is important. In the event of any breaches of the mortgage terms and conditions, the lending company has the right to remedy the breaches, which could mean occupiers become homeless as the lending company has priority rights to the property.

What is involved?

The consent form is also known as a deed of consent, an occupiers waiver form or a deed of postponement and consent to mortgage. By signing the form, occupiers must understand what rights they are waiving in the event of there being any breaches in the repayment of the mortgage.

What is the legal background for the form?

The need for a consent form to be drawn up arose as a result of a legal case: Williams & Glyn’s Bank Limited v Boland [1981] AC 487. Mr Boland was the registered proprietor of the property and Mrs Boland also lived there but was not a registered occupier. When Mr Boland defaulted on his mortgage, Mrs Boland was held to have an equitable interest in the property as she had made a contribution to the purchase price. Although Mr Boland had defaulted on the mortgage, priority interest was given to Mrs Boland rather than the lending bank that had secured its interest in the property. There are more examples of similar legal disputes.

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Lenders obligations

Lenders should be careful to ensure you understand the conditions of the consent form, as it must be clearly explained and needs to be clear that there was no undue influence in the signing of the forms.

What does the form cover?

You should thoroughly read the occupier consent form to make sure you fully understand what is required. You should consider the points very carefully, as it states clearly that the lender has the right to seek a court order for possession of the property in the event of there being a breach of the mortgage repayment terms and conditions. In the event of this happening, all occupiers must agree to vacate the premises. The lender can also transfer, charge or dispose of the mortgage.

Arranging for this documentation to be completed is quick and easy. You should make sure that everything is arranged and understood to avoid complicated situations arising in the event of a breach of the mortgage terms.

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