Navigating the Paperwork of a Property Purchase

Picture the scene: you’ve found the perfect home with your partner or family member. For various financial or personal reasons, only one of you will be named on the mortgage. Yet, as the paperwork progresses, your solicitor mentions a document that you, the ‘non-owning’ resident, must sign: an Occupier Consent Form. While it might sound like a simple piece of administrative housekeeping, this document has significant legal weight and is crucial for the mortgage to proceed.

So, what exactly is it, and why is it so important to the lender?

What is an Occupier Consent Form?

Known interchangeably as a Deed of Consent, Deed of Postponement, or Occupier’s Waiver, this form is a legal agreement required by mortgage lenders. It is for any adult who intends to live in the property but will not be a legal owner or named on the mortgage deeds. Its primary purpose is to protect the lender’s interest in the property.

In essence, by signing the form, the occupier agrees to waive certain legal rights they might have over the property. This ensures that if the mortgage borrower defaults on their payments, the lender can enforce its security—ultimately, repossess and sell the property—without being obstructed by the occupier's right to live there.

Why Do Lenders Insist on It?

Under UK property law, a person living in a property can sometimes acquire what’s known as an ‘overriding interest’. This can be a right to occupy the home, even if they aren't the legal owner. This scenario poses a huge risk to a mortgage lender. If they needed to repossess the property to recover their loan, an occupier with an overriding interest could potentially refuse to leave, leading to a complex and costly legal battle.

The Occupier Consent Form effectively neutralises this risk. It clarifies the legal positions of all parties from the outset. By signing, the occupier formally agrees to postpone their rights in favour of the lender’s. This gives the lender the certainty they need to approve the mortgage loan.

What Are You Agreeing To?

When you sign an Occupier Consent Form, you are typically making several key declarations:

• Consent to the Mortgage: You confirm that you are aware of and consent to the mortgage being taken out on the property.
• Postponement of Rights: You agree that any rights or interests you may have in the property will rank behind the mortgage lender’s rights.
• No Obstruction: You promise not to obstruct the lender from exercising its powers, including taking possession of the property if the mortgage terms are breached.
• Acceptance of Terms: You acknowledge that the amount secured by the mortgage can vary over time.