Occupier’s Consent Form Legal Advice

An occupier's consent form is necessary when an adult who is not the legal property of the owner is living in your house, and you decide to take a mortgage on the property. This can cause problems for the lender if you don't keep up with your mortgage payments. The occupier can legally obtain a legal interest in a property even if they're not the registered owner of it.

By signing your mortgage deeds, you assure the lender that you will give them vacant possession of the property if they need to repossess it. If the occupiers of the property sign the occupier's consent form, the lender can claim vacant possession of your property if they need to repossess it.

The document contains several important components that you should be aware of:

  • Acknowledgment of the lender’s rights: This part of the form clarifies that the lender may repossess the property if the borrower fails to adhere to the mortgage terms.
  • Consent to leave: The occupier agrees to leave the property without causing any obstruction if the lender exercises their right to repossess it.
  • Waiver of any legal rights: By signing the waiver form, the occupier agrees not to assert any legal rights to claim against the lender concerning their occupation of the property.
  • Advice clause: The lender includes a recommendation or requirement for the occupier to seek independent legal advice before signing to ensure they fully understand its implications.

Who Signs an Occupier’s Consent Form?

Every adult occupier over 18 living in the property as their primary residence but not named on the mortgage or deed may be required to sign the consent form.

Other people living on the property have rights besides the owner, who signs the mortgage deed and the contract of sale. An adult occupier may not have a legal stake in the property, but they may have the right to live there.

A mortgage lender obtains the rights over such a person with the occupier’s consent form. In this case, the occupier gives up rights without being given any consideration in return.

Why is Independent Legal Advice Needed for an Occupier Waiver Form?

Even if the occupiers of the property are not registered as legal owners, they could become beneficial owners if they contribute financially to the property costs. If you don't make the payments, this can interfere with the mortgage lender's ability to enforce the mortgage terms and repossess the house.

This is why occupiers will be asked to sign an occupier's consent form and waive their rights to the property. This ensures the occupier is fully aware of the terms of the consent that they are giving. The independent legal advisor has the following roles during the meeting:

  • Explain the contents, nature, legal, and practical effect of signing the consent deed.
  • Advice the occupier of the purpose and amount of the loan advance using the copy of the mortgage offer and mortgage conditions provided, the interest rate and the term of the initial loan and repayment details, and if further advances may be made in further
  • Warn the occupier of the risks involved in signing the consent.