Is It Necessary To Get Occupier’s Consent When Mortgaging Your Property?
Landlords in the UK often are not familiar with various laws pertaining renting out their property to a tenant. When they do come across certain landlord requirements and responsibilities, they are often surprised. One such requirement is getting the consent of the occupier while mortgaging one’s property.
As a landlord you are likely to wonder, why this is necessary to get the occupier’s consent before mortgaging one’s property when you have the ownership title. This requirement is to safeguard the interests of your tenant. When you apply for a mortgage loan, you are required to pay your monthly dues regularly. When you fail to pay the dues, your property would be brought to foreclosure and this will affect the occupant as they need to vacate the property. In case they are running a business, their business will be affected and they will experience monetary loss. Therefore, the law requires that you get the consent of the occupier.
You need to approach an independent legal advice solicitor to handle this requirement. Your occupier should sign the form that states that they give their consent. This will safeguard the lending institution at a future date from law suits filed by the occupier. If you are mortgaging your property, first understand the requirements of a rental property.
If the property you own is occupied by you then you need to still get the independent legal advice but here you need to sign the certificate stating that you understand all the terms and conditions of the loan document fully and it has been explained to you fully by your independent legal advice solicitor. This will forfeit you from all possible claims in future stating that you did not understand the loan agreement terms fully. Moreover, you also get a chance to closely review the loan agreement along with your legal advisor and understand the agreement fully. This in a way protects the borrower’s interest too.
It is always important to find the most dependable independent legal advisors for this job. If you have any questions regarding the requirement on getting the occupier’s consent for your mortgage loan you can have the doubts clarified by the experts in this field instead of acting based on presumption.
Ensure that you have this requirement fulfilled in good time so that there are no delays in your loan application process. You can even get your independent legal advice certificate online provided your lending institution does not mind this process being handled online. Look for a trustworthy solicitor so that they will explain all the terms and conditions of the loan agreement accurately.
If your occupier should object you going for the mortgage for the fear that they would be ousted when you fail to pay the monthly dues, then the process has to wait until your contract with the tenant ends before which you could proceed with the mortgage application process. It is best to have a clause on possible future mortgaging included in the rental agreement itself after discussing with your solicitor.