Mrs P is a widow who lacks capacity. However, her daughter (Mrs X) has an enduring power of attorney in place.
The property has no mortgage and is owned and occupied by 3 Trustees, Mrs P, Mrs X and her husband Mr X. Mrs P has a lifetime interest under the Will Trust. The property is of course owned on a Tenants in Common basis.
Mrs X has approached me with a view to my arranging a relatively small mortgage in the region of £30K.
Whilst I am confident in getting the mortgage underway initially, I am concerned as to what happens when the solicitor acting for the lender submits the Certificate of Title. What is the likelihood of the application failing at the last hurdle?
It wouldn’t fail at the last hurdle as the decision in principle would fail (at the first hurdle).
Mr an Mrs X could make a joint or single application for the mortgage. Some lenders will accept a single applicant with multiple registered owners.
Mrs P would need to sign to agree to the charge on her equity (and agree responsibility for the repayment).
Id suggest this may cause a conflict of interest on the EPA as it would argubley not be in her interest to take this course of action. (She could lose her home).