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Aston Lawyer
Aston Lawyer, Solicitor
Category: Property Law
Satisfied Customers: 10794
Experience:  LLB(HONS) 23 years of experience in dealing with Conveyancing and Property Law
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I am remortgaging our home to get a better 5 year rate. HSBC

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I am remortgaging our home to get a better 5 year rate. HSBC have sent my wife, who is not named on the mortgage to sign a letter of 'consent and postponement by deed' giving them 1st interest in the property.
If I pass away, will my wife still be able to live in the house if she can pay the mortgage and as my wife inherits everything from me
Customer: replied 4 months ago.
the clauses that she needs to sign are
1. I consent to the property and assets being charged to HSBC on the terms of the mortgage
2. I postpone any present or future right or interest which I may in or to the property and assets to the bank`s rights ind interest under the mortgage
3. I will not maintain against the bank any rights or interest mentioned in clause 2 above and will give possession of the property and assets to the bank if it exercises its rights under the mortgageSo, if I die and the bank want to take possession, does my wife have to move out and what would happen to the equity?

Hi Andrew, thanks for your enquiry.

Firstly, the Letter of Consent is a standard form that all Lenders insist are signed by any adult occupiers whose names are ***** ***** the Mortgage. By signing the Form, your wife is not consenting to vacate the property on your death- it is merely to confirm that if you do not pay the Mortgage, and the property is repossessed, she will agree to vacate.

However, if anything were to happen to you, HSBC would want an assurance that your Wife could pay the Mortgage, and would eventually (normally after 6 months or so) ask her to apply formally so that the Mortgage is transferred into her sole name. The best thing you can therefore do is to make sure that you have sufficient life cover in place to pay off the Mortgage in the event of anything happening to you so your wife is protected.

I hope this assists and if so, I would be grateful if you could rate my answer in the top right hand corner of your screen. Kind Regards Al

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