Occupier’s Consent Form

The requirement for occupiers to waive their rights of occupation where a property is being mortgaged has been termed differently by the various mortgage lenders and equity release providers, and there is inconsistency as to the names used for the document the lenders asks occupiers to sign, which can often cause some confusion. The name of the document your lender or equity release provider wants you to sign will likely be along the lines of:-

The common thread, however, is that a proposed mortgage lender will be asking an adult occupier who will be living at a property they will not own, which will be mortgaged to the lender, to sign a document stating they will vacate the property if the mortgage falls into arrears and the lender wishes to repossess, and if the occupier has acquired any financial interest in the property, that it is acknowledged that the lender must rank in priority in being repaid its mortgage loan.

Mortgage lenders need to be able to prove that an adult occupier signing an Occupier’s Waiver Form was aware of the effect of the document they were signing, failing which, the signing of an Occupiers Waiver Form could be deemed ineffective by the Courts.

The Courts have laid down guidance  which place mortgage lenders under a duty to make reasonable enquiries as to whether there will be any adults living at a mortgaged property other than the mortgage borrowers. Any such adult occupiers (even family members) will be asked to sign an Occupier’s Waiver Form which requires that person to leave the Property if the mortgage lender seeks to repossess.

Most mortgage lenders generally require any adult occupiers who are not on the deeds, and who need to sign an Occupier Waiver Form, to take Independent Legal Advice from a solicitor or other lawyer, so that the nature and effect of the person signing the Occupier’s Waiver Form is made clear to them.

Once this Independent Legal Advice has been given, it will usually be inferred that the occupier is aware of the effect of the waiver of their rights of occupation as well as any other rights (such as acquiring a financial interest in the property), and the Courts will then be satisfied that the occupier will then be bound by the terms of the Occupiers Waiver Form.

However, if clear Independent Legal Advice is not given on the occupier’s waiver form, the mortgage lender may be left in a position where it is prevented from repossessing a property by a cohabitee of the borrower in the event that the mortgage loan falls into arrears.

Finding a solicitor who offers Independent Legal Advice on an Occupier’s Consent Form can prove challenging.

Our extensive experience places us in an excellent position to understand your requirements and your circumstances, and to arrange a cost-effective ILA appointment for your occupier at a convenient time with our panel solicitors via online video conferencing. They will then certify to your mortgage lender that the formalities have been dealt with, thereby enabling you to complete your mortgage.

At ILA-Connect, we work with law firms nationwide who understand and deliver the Independent Legal Advice you need. Simply Book Now or get in touch with us by calling us on 0333 300 1879 or email [email protected] and we’ll get straight back to you.