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Legal matters

Mumsnet has not checked the qualifications of anyone posting here. If you have any legal concerns we suggest you consult a solicitor.

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Original poster

Declaration by Occupier

13 replies

legalqueri · 06/03/2018 17:14

Dh is buying a flat for us to live. I can't be on mortgage and deed as I am not working and adding me to mortgage would have made us entitled to a lower loan amount.

Dh is communicating with solicitors on his own. Today I received a letter (Declaration by Occupier) by the solicitor.

I am a bit worried about a line on the letter -

'By signing the Declaration by Occupier you are giving up any right of interest that you may have in the property'.

It seems like this is not the standard line in the templates available online.
Should I be worried?
Many thanks!!

OP posts:

Allthebestnamesareused · 06/03/2018 17:19

Why would adding you to the mortgage mean you can borrow a lower amount?

wheresmyphone · 06/03/2018 17:43

I don’t work but just been put on mortgage. If you are legally married I would really investigate this further. Sounds very odd to me!

prh47bridge · 06/03/2018 17:44

Is that on the declaration itself or just the covering letter? What matters is what is on the declaration.

Original poster

legalqueri · 06/03/2018 17:47

My income is 0 and adding me was decreasing our affordability on loan calculations.

Is the statement on the Occupier Declaration letter standard?

Thank you in advance.

OP posts:

Userplusnumbers · 06/03/2018 17:49

How was adding you decreasing affordability - how were the outgoings being calculated to begin with? Because the sum total of incoming cash vs outgoing is still the same it shouldn't have affected it, unless if course you were both playing silly buggers with the mortgage calculation...

Userplusnumbers · 06/03/2018 17:51

I.E. It sounds like your husbands income is supporting you both, but you've not been listed as a dependent on the mortgage application, which would have lowered the calculation regardless of whether you were named or not

eurochick · 06/03/2018 17:52

I didn't think these were required from spouses?

ScienceIsTruth · 06/03/2018 17:56

I'm on our mortgage even though I don't work or contribute to paying it off in any way. Afaik, it makes no difference to the amount you can get as a loan. The loan amount was simply based on my dh's sole earnings. I couldn't get a mortgage in my own right, but can as part of a couple. Maybe it's different where you live?? Otherwise, it's sounding as though he's pulling a fast one.

prh47bridge · 06/03/2018 18:00

Is the statement on the Occupier Declaration letter standard

To repeat my question, is this statement on the Declaration (i.e. the bit you sign) or the covering letter?

Jixy8731 · 06/03/2018 21:03

sorry, but think your partner is trying to give you no claim on the property. The bit about a lower loan on addition of yourself makes no sense. Lenders are more than happy to have another name on a debt, incase of a default, then they can chase both of you for it. It would not decrease the amount offered!

Original poster

legalqueri · 06/03/2018 22:05

Thanks everyone for your concern.

It may or may not lower the allowed amount depending on how much you are asking for. E.g. bank would pay 4.5x of dh's salary but in case of adding me would pay 4x because I am dependent.

We really needed the maximum amount allowed to him because the said property was a little outside our budget. If we were buying a property a bit cheaper, I could have been added to mortgage. So I have no concerns with that issue.

I know this because I went for mortgage application with him.

I was finding the wording on the cover letter by solicitor a bit confusing.
It said -

'By signing the Declaration by Occupier you are giving up any right of interest that you may have in the property'.

prh47bridge, this line is on covering letter prepared by solicitor.

Thanks :)

OP posts:

prh47bridge · 06/03/2018 22:07

but think your partner is trying to give you no claim on the property

Since they are married she will have a claim on the property regardless. If he was trying this his solicitor would have advised him accordingly. And the bit about a lower loan on addition of the OP may well be true. It depends on the lender. If I run my salary through the HSBC calculator the amount it says I can borrow with 3 dependents is significantly more than the amount it says my non-earning wife and I can borrow with 2 dependents. It may not make much sense but the lender can do whatever they want.

prh47bridge · 06/03/2018 22:16

If it is on the covering letter it has no legal effect. What matters is what is on the actual Declaration. Having said that, I think the letter is poorly written. You cannot sign away all your interest in the property. As you are married, the property will be an asset of the marriage and will go into the pot should you divorce regardless of any pieces of paper you sign.

The declaration itself should say that you are agreeing that the lender's rights take precedence over yours. Without this, if you default on the mortgage they wouldn't be able to repossess the house as your rights over the property would take precedence over theirs. Of course, when a repossessed house is sold it tends to go for less than its true value so you may well be left with nothing if that happens. That may be what your solicitor is referring to. But signing the declaration means only that you are agreeing to the terms on the declaration. Anything in the covering letter is not legally binding.

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