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Consent to Mortgage

We have been asked to arrange for your signature to a document called a "Consent to Mortgage", or similar. This is required where:

  1. one person is legal owner of a property,
  2. there is a new loan on that property, and
  3. at the time of that loan a third party (you), will also occupy the property.

Sometime lenders will require them in other situations also.

You must consider taking legal advice which is independent, both of the lender, and of the owner. We usually act for them both, and cannot act also for you. Whatever nuisance this seems, you must be quite clear about these arrangements, and that you enter into them freely. The document has a direct effect on your ability to keep a roof over your head. If you wish to take independent advice from a third party, we can either arrange this for you, or you can make such arrangements yourself. In either case you should expect to have to pay a fee to whoever gives the advice.

We may try to assist you as to the nature and effect of the document, but the most we can do is the technical act of witnessing your signature. We will not advise you whether or not to sign it, or on its legal effect.

Read the document yourself and in full. Make sure that you understand it.This note is general, and these documents do differ from each other.

The document regulates the relationship between your and the lender. It does not affect any arrangement you have with the owner of the house although, of course, your position in the house will be affected by this agreement.

The consent says that if the owner is required to leave by the lender, then you must go also. You promise not attempt to argue with the lender that you have any right to occupy the property. Such an interest might arise in different ways: you might have made some contribution to the house, or you might have paid toward the purchase. You might come to have an interest that you do not now expect to have. Any such interest will lose any protection, possibly the only protection in law, which is your occupation of the house.

The consent form may say how much is being borrowed, but there is no promise from the lender that the loan will not be increased. Further advances may be made, and this agreement will apply to those loans also. Usually mortgages are now 'all-monies' charges which means that any sum due from the owner to th elender is charged on the house.

If you choose to take independent legal advice, then please make an appointment as soon as possible.

If you choose not to, then please sign this document below, and return it to us.

Important: Please note that our law-bytes are retained for archival purposes only. The law changes, and these notes are often, now, out of date. You must take direct advice on your own personal situation and the law as it currently stands.
All information on this site is in general and summary form only. The content of any page on this site may be out of date and or incomplete, and you should not not rely directly upon it. Take direct professional legal advice which reflects your own particular situation.
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Copyright and Database Rights: David Swarbrick 2012
18 October 2013 http://www.swarb.co.uk/lawb/cvrConsentMtg.shtml 11 18 October 2013