SALE OF PROPERTY
It is vital that the occupier of a property signs the sale contract. This applies to adult occupiers over the age of 18, but not to minors (children) who cannot legally hold property. The buyer’s solicitor will insist on this to protect the buyer and their lender. The buyer must obtain vacant possession on completion. That means the seller’s occupiers must sign to waive any rights they may have and must confirm they will leave.
By signing the sale contract the occupier has no right to stay in the property and understands the property is being sold and they must vacate B on completion. No buyer (or their lender) wants the seller’s occupier still in residence after completion.
An occupier who cannot sign the relevant part of the sale contract should seek independent legal advice before signing away any rights. If they have an interest that needs protecting they may wish to register a restriction or notice of Matrimonial Home Rights. The occupier should meet with a family / matrimonial solicitor or a Conveyancer to advise and assist them with this.
PURCHASE OF PROPERTY
Where purchasing a property with a mortgage and an adult occupier* will live at the property with you (but is not named as a borrower) then your lender will require the occupier to sign a specific form drafted by the lender. The below is an example of standard wording for what is referred to by your Conveyancer and lender as an Occupier Consent or Lender Waiver.
This form exists for the mortgage lender's protection and they insist on it being signed. The document will protect the lender from any claim that the occupier has rights in the property. An occupier having rights could be a problem if the Lender needed to take repossession proceedings. Repossession proceedings are a last resort where you are unable to make mortgage payments.
*An adult occupier is a person over the age of 18.
What Is An Adult Occupier Agreeing to when they sign this form? This is clear from the example set out below:
I, the Occupier, understand and agree that the mortgage will secure all sums due to the Lender from the Borrower, including the loan, any subsequent loans which may be made, and any other sums secured by the mortgage.
I occupy, or intend to occupy, the home. I am aware that you, the mortgage lender, require me to enter into this Deed in order to consent to the creation of the mortgage and by agreeing to do so I agree to the following:
a) To postpone any rights, estate or interest I may have in the home
b) To charge, in the Lender’s favour, any estate rights or interest which I may, or will have, in the home, or the proceeds of sale
c) I consent to the Borrower creating a mortgage over the home in the Lender’s favour
d) I acknowledge that the mortgage will secure the loan, any additional loans and any other sums which are due to the Lender from the Borrower both now and in the future.
e) I agree that any rights that I have, or may acquire, in the home or the proceeds of sale shall, by virtue of this Deed be postponed in the Lender’s favour and shall be subject to the Lenders legal rights, interests and remedies under the mortgage.
f) If I have an interest, or right in the home, or the proceeds of sale, which is not postponed then I charge to the Lender any such estate, interest or rights as security for all money and liabilities secured or to be secured to the Lender by the mortgage.
g) I agree not to claim, or maintain, against the Lender any right or interest of any nature in the home.
h) I will immediately vacate the home and give up possession to the Lender if they notify me that they wish to exercise their right to possession of the home under the mortgage.
i) I agree that the Lender may at any time transfer, charge or otherwise dispose of their rights in this Deed to any person acquiring an interest in the mortgage whether under or through the Lender.
SIGNED BY:
DATED:
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