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Thanks for your question. I am a solicitor in Scotland with 35 years of experience in private practice and I hope that I can help you with your question today. Let me have a quick look at your question and I will either give you an initial answer or ask you for further information. I aim to respond as quickly as I can but sometimes I may want to take a little time to consider your question so as to give you the best possible answer.
If it was a spouse or civil partner and the house was being transferred after a divorce or dissolution then I could perhaps begin to understand the position. However this is your brother and after transferring the title he has no statutory occupancy rights, is not a tenant and would be staying there on a grace and favour basis. And the lender isn’t going to check up! Very strange but I would not worry too much about it. You’re entitled to have your brother stay as a guest until his new house is ready.
I hope this helped you today. Please do let me know if I can clarify anything. I am always happy to help. You are always welcome to ask a follow up question if it will help you further.