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Jamie-Law
Jamie-Law, Solicitor
Category: UK Property Law
Satisfied Customers: 3273
Experience:  Solicitor
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We are about to get a let-to-buy mortgage on our current

Customer Question

Hello,We are about to get a let-to-buy mortgage on our current residential property and purchase a new residential property to live in. The LtB is with Nat West and the letter concerning the Occupier's Consent and Postponement Deed says:"The form is your consent to the new mortgage and is your agreement to postpone any rights you may have over the property to the new lender."Is this any more than the usual claim to money they are owed, should be default on the loan, or is it something more sinister? The paperwork keeps reiterating that they (the lawyers acting for Nat West) cannot advise us as to the implications for us.Having written all that, I now spot a section that says "Please note that the Occupiers Consent and Postponement Deed do not apply to Buy to Let applications" - so does this apply to us and, if not, should we ignore it or sign it?Many thanksLaura
Submitted: 7 months ago.
Category: UK Property Law
Expert:  Jamie-Law replied 7 months ago.

Hello Laura my name is ***** ***** I will help you.

Have you rented it out yet please?

Customer: replied 7 months ago.
Hi there,no - we are still living at the property as we don't have anywhere to move to yet.L.
Expert:  Jamie-Law replied 7 months ago.

Ok - well a Deed of Postponement would be required as you are there at the moment.

This is quite normal, so dont worry about it. Usually its domestic residential mortgages only but if you are staying there they will want this for the time being.
Can I clarify anything for you about this today please?

Customer: replied 7 months ago.
Hi there,Thanks for this. Perhaps just clarification as to what it means eg first charge in the event of a sale or bankruptcy etc. Also we may be living here now but won't be in a month or so. Does you reply imply there are protections for tenants so the deed wouldn't apply in the case of a 'live' BtL? I don't recall signing one of these before.Many thanks
Expert:  Jamie-Law replied 7 months ago.

They dont have a right to remain for BtL because the Courts ends the tenancy agreement.

These are usual for residential mortgages for people living there who are not named on the mortgage

Does that clarify?

Customer: replied 7 months ago.
Sorry Jamie,We are named on the mortgage (husband and myself). We are co-owners of the property now and will both be named on the LtB.I know you keep saying these are normal but what is the effect of them? That's what I'm seeking help on.
Expert:  Jamie-Law replied 7 months ago.

In reality nothing. It just means that they have rights over the property in the event of default.

Nothing more.

Does that clarify?

Customer: replied 7 months ago.
Well does it mean they can claim back what they are owed and nothing more? And what is left comes to us (or other creditors)?Thanks
Expert:  Jamie-Law replied 7 months ago.

Well this is for their benefit.

It may be there is an issue further down the line for other creditors, but this Deed is for the bank
Does that clarify?

Customer: replied 7 months ago.
No - you are not answering my question:does it mean they can claim back what they are owed and nothing more?The letter says:"The form is your consent to the new mortgage and is your agreement to postpone ANY RIGHTS you may have over the property to the new lender." Obviously we should have rights. I will have lived there for 15 years until vacating the property, and we will own around 30% of the equity after remortgaging.
Expert:  Jamie-Law replied 7 months ago.

Nothing more - yes

Does that clarify?

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