Knowledge Guides

Subletting a Shared Ownership Property: What You Need to Know

Posted May 14, 2024
Subletting a Shared Ownership Property: What You Need to Know

The Shared Ownership scheme helps those who can’t buy a home outright. It allows you to own part of your home (25% to 75%) and pay rent on the rest.

Over time, you can increase your share in the property through “staircasing”.

A common question we often get asked is “Can I sublet my Shared Ownership Home?”. This this guide, we cover what you need to know about subletting.

Subletting Rules

If you own a shared ownership home, subletting it usually has strict rules.

These rules keep housing affordable for those in need.

Here’s what you should know:

  • Most shared ownership agreements limit or forbid subletting.
  • You may need permission from the housing association that partly owns your property.
  • Subletting could affect your ability to buy more shares in your home.
  • Check your lease agreement and talk to your housing provider before planning to sublet any part of it. This ensures you meet all legal requirements and understand how it might impact future options like staircasing.

Subletting part of your Shared Ownership home

If you have a shared ownership agreement, you can often sublet a room while still living in the property.

Here are the key conditions, though these may vary depending on your housing association and lease agreement:

  • You must live in the home with your tenant.
  • Inform your landlord or housing association if you plan to sublet a room.
  • Ensure that subletting does not breach any rules of your lease agreement.

Subletting your entire Shared Ownership home

Eligibility for Subletting:

  • You must fully own your home to sublet it. If you only own part of it, the housing association retains rights and responsibilities that prevent full subletting.
  • If you do not own the entire property, you need explicit permission from your landlord to sublet. This permission is difficult to obtain and usually requires special circumstances.
  • For example, members of the armed forces on active duty may be allowed to sublet if they need to live away from home for a certain period. In summary, unless you fully own your home or have specific reasons approved by your landlord, full property subletting is usually not permitted.

What to do before subletting your home

Check your lease agreement and ‘Key Information Document (KID)‘ to know what you’re allowed to do.

Talk to your landlord or housing management office about subletting. It’s important to follow the rules and make sure your contract covers it.

Subletting can be complex, especially with shared ownership. Getting advice from a solicitor might help you understand the lease better and avoid legal issues.

It is essential to follow the rules set by your landlord or housing association closely.