Can anyone explain this Occupier's Declaration to me?

[BelleEtLaBaby]

Ok, so I'm completely clueless here, and I do intend to seek legal advice before signing.

Dh and I are about to buy a house, our first. Due to the fact that I didn't have a job when we originally applied for the mortgage, coupled with the fact that I have some (not significant) adverse credit history, the purchase of the house and the mortgage is in DH's name only. I won't own the house at all. None of my money has gone into the deposit (gift from amazing pil's).

This is a temporary measure while I build up a better credit score and in a couple of years I do intend to get put on the new mortgage.

I've been sent an Occupier's Declaration to sign. It looks like we/he can't buy the house unless I sign it, but that it states that "any right of occupation or share or interest in the property which I may have now or later are postponed and subject to the rights of Building Society X as first mortgagee"

If I sign this document and something happens to DH (ie he dies), will I lose my home? His will leaves everything to me, and subsequently DS, and the life insurance policy has a provision to pay off the mortgage on his death. Does signing this document negate all that and put my rights after those of the mortgage lenders?

Any advice really appreciated. I appreciate that if DH were to leave me, or vice versa, I wouldn't necessarily have any rights over the house, but our hands are tied and I trust him completely. Thank you

The declaration is between you and the Building Society,and the purpose of it is that if the mortgage isn't paid, and the house is repossessed, you have no rights to remain.

However, you do have rights under the Matrimonial Homes Act (a right to occupy), and as your husband has gifted his residuary estate to you (including the house), you would indeed inherit it from him, subject to any outstanding mortgage.

My best advice is to make sure that the mortgage is insured so that if your dh dies, it is paid off. You should probably buy a decreasing term life policy to cover it, but try to make sure that it isn't actually linked to the mortgage or the insurance money will be taken into account for inheritance tax purposes.

Sorry that last para got a bit technical, but essentially, don't worry about signing the occupiers declaration, you will still inherit if your dh dies but do look into insuring the mortgage.

Thank you so much. That's what I thought - I just want to be certain I'm not signing the family home away! I figured its more for if he doesn't pay the mortgage or something. To make sure the building society don't end up with me refusing to leave and so an unsaleable house. Thank you!