During a property purchase, you are likely to encounter plenty of new legal terminology and important documents. One such example is an Occupier Consent Form. Also known as a Deed of Consent, Consent to Mortgage or an Occupiers Waiver Form, the issuing of this document is a fairly common occurrence during the process of securing a mortgage on a new home.
An Occupier Waiver Form is signed by anyone aged 17 and over who is not the legal owner of the property but will be living there. The document is issued by the mortgage lender. Effectively, it gives the lender protection so that in the event of a repossession, any adult living in the property at the time is prevented from making a claim of right of occupation. If the mortgage holder defaults on repayments or breaches the terms of the mortgage and repossession occurs, the lender can evict all occupants of the property. It allows the lender to remedy breaches of the mortgage without the occupier having a right to stop them.
In most cases, the occupier is a spouse, or a child aged over 17. Some mortgage lenders may ask anyone aged over 16 to sign the form. This can be because during the fixed term of the mortgage, that person could become 18 and may create a legal interest in the property.
It is likely that increasing numbers of people will encounter Occupier Consent Forms, as record numbers of young adults continue to live with their parents. Soaring house prices have been blamed for the trend, which saw 3.5 million men and women in their 20s and 30s living with their parents in 2019, compared to 2.4 million 20 years earlier.
What to do if you have to sign an Occupier Consent Form
Anyone asked to sign an https://www.parachutelaw.co.uk/occupier-waiver-form occupier waiver form must seek independent legal advice before they sign it. This legal advice must come from a practising solicitor or licenced conveyancer who is not already involved in the property purchase. While this may seem an inconvenience which will cost you money, it is usually done for the benefit of the person being asked to sign it.
Legal representation is required in order to ensure the implications of the form are properly understood. Anyone who signs the form is waiving their right to the property and so will be evicted if repossession occurs – this must be fully understood. Having independent legal representation also prevents claims that the form was signed under duress.
A solicitor overseeing the signature of an Occupier Consent Form must confirm they have given legal advice about the form, what it means and warned of the legal and practical implications of signing it. They must also confirm that the Deed of Consent has been fully understood and that the person signing it has confirmed that they wish to do so.
A witness needs to be present at the signing too. The witness must be over 18, cannot be a family member and should stand to receive no benefit from the form being signed.
What happens if an Occupier Consent Form is refused?
If those aged 17 and over due to live in the home do not sign the Deed of Consent, it is likely that the mortgage provider will refuse to proceed with the mortgage. Refusal to proceed can also occur if that person has been told to seek independent legal advice but signs the form without doing so. Some lenders may offer the option of opting out from independent legal advice but this is rare.