What is an occupier’s consent form is & why you should get legal advice before signing it?
What is an occupier consent form?
When you are planning to purchase a property, anyone over the age of 18 who will be living in that property and who is not the legal owner may be asked to sign an occupier’s consent form. Some mortgage lenders will require them to sign the form to ensure that they vacate the property if repossession of the property occurs. Signing such a form essentially means giving up your right to occupy the property, as anyone over the age of 18 may have a beneficial interest in the property and could potentially claim a right of occupation.
What does beneficial interest mean?
An individual who has a beneficial interest in a property simply enjoys the benefits of living at the property or the income generated from the property.
What are the pros of an occupier’s consent form?
An occupier’s consent form is to protect the mortgage lender from anyone over the age of 18 living in the property and who is not the legal owner from making a claim of right of occupation if repossession occurs.
What are the cons of an occupier’s consent form?
The individual being asked to sign the consent form would need to seek separate legal advice before signing such a document. This may be a short-term inconvenience, but it is for their benefit so that they can fully understand the implications of signing such a document.
What if I refuse to sign an occupier consent form?
If an individual refuses to sign an occupier’s consent form, a mortgage lender may refuse to proceed Occupier's Consent Form Legal Advice
As individuals signing such a form are giving up their right to occupy a property, lenders tell them to seek legal advice to ensure that:
· They cannot allege at a future date that their signature on the occupier consent form was given unwittingly, under pressure or by duress and that,
· They fully comprehend the implications of signing this document.
If an individual required to seek legal advice and/or sign the form fails to do so, relevant lenders may subsequently refuse to proceed with the mortgage/loan necessary to purchase the property.
Getting Independent Legal Advice
It should be noted that the above is merely a brief introduction to the topic should therefore not be considered hard-and-fast, reliable legal advice. The implications of signing an occupiers consent form are huge– making it imperative to get in touch with a solicitor to ensure you fully understand all the ins-and-outs explained in detail before signing the form. Our expert independent legal advice solicitors are dedicated to providing quality legal services within a professional, yet approachable environment and we have years of experience in providing independent legal advice concerning occupier consent, so if you were asked to sign such a form, give us a call today.