Deed Of Consent

[blazingnutter]

i have to sign a deed of consent, if my husband defaults on his payments I am giving permission to give house up, what about the equity? do I have a claim on that ? also if my husband dies and the insurance is short by a few thousand will I be able to pay the remainder to pay off the mortgage to keep the house

[VHG]

>>i have to sign a deed of consent

You may regret it.

If the house is repossesed you could get thrown out on the street with nothing.

http://www.fridaysmove.com/deed-consent/15625

[boxtops]

is the house in your joint names, what's the set-up?

[woofgang]

Why do you have to sign it? Do not sign anything that you don't understand or are not completely happy with.

[blazingnutter]

house is in my husbands name, he is taking out a new mortgage as his current mortgage is an endowment and will have a shortfall,his existing life cover wont cover the new mortgage fully,

[boxtops]

so why do you have to sign anything, if you have no financial interest in the property?

[blazingnutter]

if there is an adult who lives at the property they have to sign to say they understand the lender has to have their money 1st....... what I need to know is if my husband dies and the life insurance pays up but there is a shortfall will I be able to pay the outstanding debt and stay in my home

[woofgang]

best people to ask are the mortgage company.

[ubasses]

Normal practice these days I am afraid. Mortgage Company granting a loan on a property where another adult lives who is not on the Mortgage will require a Letter of Comnsent. As the house is in your husband's name only if he defaulted and they repossessed you would be agreeing to leave the property. Any equity left after the mortgage Company had recovered their losses would be payable to your husband. Should he die, as long as he has left the house to you in his Will, if the insurance had a shortfall you would have to obtain a mortgage in your own right. If he dies intestate you would get first £250,00 value of Estate and a life interest in remainder which would pass to any children.

[Peter Pedant]

.... she has to sign or otherwise the hubby dont get the mortgage

So basically the mortgage co is musling in on the order of pay-out in the event of the whole thing going foop!

so basically this means that if there is a default then the mortgage co gets paid and then the remainder if any goes to you and your husband. So yeah under some circs you would be out on the street

BUT

you have to decide what you are going to do in the event you refuse to sign and they dont give the mortgage.

[Barquentine]

It is standard practice for the lender to require anyone else over 18 living at the property to sign a Deed of Postponement (or Deed of Consent). You are postponing any rights you may have acquired in the property to after the lender's. They will register a legal charge on the property which they can enforce if repayments aren't made. You are supposed to obtain independent legal advice (ILA) about this. Banks and mortgage lenders make it a condition of the mortgage (read through your husband's mortgage offer) that any third party (such as you) have a solicitor to advise you what it means for you to sign the Deed. Your solicitor then has to sign an ILA Letter of Confirmation and return it to your husband's lender before they release the monies.