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Thomas Judge
Thomas Judge, Lawyer
Category: Law
Satisfied Customers: 33008
Experience:  Over 25 years experience in law
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I have a question regarding mortgage underwriting

Customer Question

Hello.
I have a question regarding mortgage underwriting in relation to occupancy.
Not strictly property law, but related in some way,
Can anyone help?
Submitted: 1 year ago.
Category: Law
Expert:  Thomas Judge replied 1 year ago.
what is the question
Customer: replied 1 year ago.

Hello there,

Some banks ask whether anyone will occupy a property over 17 on the mortgage application; they state these people must not have an interest in the property; my question:

1 - What do they mean by interest?

Thank you

Expert:  Thomas Judge replied 1 year ago.
It generally means a share in the property - this could be an express, implied, deemed share. Basically they may have put something towards the property - or it may have been promised to them. Also if they have lived there for a long time they may have acquired an 'interest' in the ownership of the property or simply that they should not be evicted. Happy to discuss but please rate positive
Thomas Judge and other Law Specialists are ready to help you
Customer: replied 1 year ago.

Hello there,

Thanks for this, I understand your point, a few further questions if I may:

1 - If the person also signs the mortgage deed, does this not almost waive their right, certainly as far as not being evicted is concerned, as they are bound by the mortgage conditions; thus the lender would have the power to evict?

2 - Is there any time limit after which this interest expires were it not to be exercised?

3 - Is there any way of officially recording / documenting that this person waives any interest they may have acquired to the property?

Many thanks

Expert:  Thomas Judge replied 1 year ago.
Happy to answer the additional questions but please rate positive for the original question - you will not be charged extra - thanks
Customer: replied 1 year ago.
All done
Thank you
Expert:  Thomas Judge replied 1 year ago.
my pleasure
Customer: replied 1 year ago.
All done as in I rated the answer, I think?
Could you come back on my last set of questions when you can please?
Thank you
Expert:  Thomas Judge replied 1 year ago.
1. There is a view that it doesn't - that they need independent legal advice.2. Not necessarily - it rather depends on the basis of the interest3. Normally a deed or notice that they have no interest in the property - these are very common with brokers/mortgage companies
Customer: replied 1 year ago.

Thank you

On point 2 can you possibly give me examples, i.e. types of interest and time after which it is deemed to have expired if not exercised.

If a property is owned jointly and then one person transfers their share to the other person (via transfer of equity) where does the person who has transferred their share stand in respect of interests; are they not forfitting any interest?

Also please let me know if any further payment is needed for the above question,

thank you

Expert:  Thomas Judge replied 1 year ago.
You are looking at equitable interests; implied interests; deemed interests. The key is whether you have someone in the property who has any type of interest in the property. The person who has transferred their interest should no longer have an interest in the property - these things are best however put in writing. You will need to make a further payment. Thanks