Shared ownership and subletting

mashmash90

This is really just a question I've been wondering about since getting our shared ownership property. We know you can't 'sublet' your shared ownership property as it says so on our lease However what are the potential consequences if we do this say for a month or so each year? Also does putting it on airbnb if we are on holiday count as subletting?

theartfullodger

I can't read the agreements you were given when you bought from here (silly me, I know, so sorry...): What do they say on the subject?? When you asked the question of your landlord/freeholder what did they say??

I strongly suspect should you sublet for any period you would lay yourself open to painful consequences..see
http://www.lease-advice.org/publications/documents/document.asp?item=67

Restrictions on sales and prohibition on subletting (alienation clauses)
* HCA approved shared ownership leases do not allow subletting in any circumstances.

&
http://www.lease-advice.org/information/faqs/faq.asp?item=212

I have a shared ownership lease. I wish to sublet my flat. Can I do so?

You need to examine the lease carefully, but the overwhelming majority of shared ownership leases prevent subletting.

gsmmad

Yes that would be subletting.

sann420

On paper they say subletting is not allowed but a lot of SO people do it. It is certainly happening in the block of flats that I live in. About a year ago ... I had a chat about it with one of my neighbours who does it and from what I can remember:

1) You should go for a lodger contract rather than a proper tennant contract. For e.g. a one month rolling contract between the owner and renter rather than a 6 month tennancy agreement.

2) Ask your Housing Association if they allow it. Do tell them that you need a bit of extra money because of xyz and this would help you keep up with your SO rent and mortgage payments. Most often than not they allow it or just say speak to your bank about it.

thequant

sann420 wrote: »

On paper they say subletting is not allowed but a lot of SO people do it. It is certainly happening in the block of flats that I live in. About a year ago ... I had a chat about it with one of my neighbours who does it and from what I can remember:

1) You should go for a lodger contract rather than a proper tennant contract. For e.g. a one month rolling contract between the owner and renter rather than a 6 month tennancy agreement.

2) Ask your Housing Association if they allow it. Do tell them that you need a bit of extra money because of xyz and this would help you keep up with your SO rent and mortgage payments. Most often than not they allow it or just say speak to your bank about it.

This shouldn't be allowed, SO is subsided social housing 21st century style. Plenty of honest people out there who wouldn't do this miss out on these properties.

Why is that when we have people who bleat on about not being able to get on the ladder, that when they are given state help. Rather than being grateful for the help, their first thought is how can I profit from this.

mashmash90

Shared Ownership is not "Social Housing" at all, we pay a mortgage and rent worth £1500 a month (not even including £150pm service charge) for a 2 bed flat so it's not like we'd be making a profit and our incomes were just above the 'minimum' which I think was like 60K a year. We were privately renting before for slightly less but a much smaller place so that's why we decided on SO. All people in our block are professionals not people from ex council houses or anything like that.

To sum up, I don't actually want to properly sublet but we were thinking of putting it on airbnb when we're on holiday as it would only be a couple of weeks a year but I don't think it's worth the risk or hassle reading the above.

Shenl0101

Shared Ownership is "affordable housing" as it is susbidised (usually) by the Goverment and is therefore a form of "Social Housing". Social Housing is defined in the 2008 Housing Act as "…low cost rental accommodation and low cost home ownership accommodation."


In any case you cannot sublet and should not unless you are in dire financial circumstances with agreement from your HA.

booksurr

Shenl0101 wrote: »

Shared Ownership is "affordable housing" as it is susbidised (usually) by the Goverment and is therefore a form of "Social Housing". Social Housing is defined in the 2008 Housing Act as "…low cost rental accommodation and low cost home ownership accommodation."


In any case you cannot sublet and should not unless you are in dire financial circumstances with agreement from your HA.

your use of a blanket definition is wrong. There is shared ownership which is not "social housing" and does not have restrictions on taking a lodger or subletting. I looked at one such development myself in Southampton

thequant

booksurr wrote: »

your use of a blanket definition is wrong. There is shared ownership which is not "social housing" and does not have restrictions on taking a lodger or subletting. I looked at one such development myself in Southampton

If you are not able to buy outright and rely on the help of others, then by definition that is social housing.

There's no shame in it, but that is what it is.