How to protect yourself against land and property fraud
To reduce the risk of becoming a victim, it is important to ensure that you register your land and property with HM Land Registry.Read more
If you have an adult who permanently resides at the property with you, but is not on the legal title and has not signed the mortgage deed, it will be difficult for the Lender to evict them, be it your child or any other affiliated person such as a roommate or housemate.
The Lender, therefore, requires every adult in the house to sign the Deed of Postponement to state that they are aware that you purchased the property with the aid of a mortgage and if you fail to make the repayments and you are evicted, they will leave the property with you and have no legal right over and above the Lenders right.
You are buying the property, therefore you will sign the Mortgage and by doing so agree to the terms and conditions of the mortgage, including repayment of the capital and interest. If you fail to make the repayments, the Lender may evict you under the terms of the Mortgage and a Deed of Postponement is not required for yourself.
A Lender will not give a mortgage advance until a Deed of Postponement has been signed by any permanent adult occupier. All Lenders are keen to ensure that any occupier receives independent legal advice on this particular issue.
For more information about the use of Deeds of Postponement, please contact us on 01332 226 119 or complete the form below.
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