What rights do tenants have when renting a room from a landlord with a shared ownership?

alwaysquestioning

I’m trying to understand my situation and would really appreciate some legal insight (UK – England).

I am considering renting a room in a flat from a landlord who does not live in the property. The landlord is on a shared ownership scheme, and is renting out both rooms in the flat to two separate tenants.

From what I’ve read online, it seems that renting out the whole flat is not legal, without a proper green light from the housing association.

What makes me suspicious is that all bills are included in the rent, and the landlord keeps everything in their own name. This makes me think they might be intentionally structuring it this way to avoid attention from the council, housing association, or mortgage lender, especially if subletting without permission is not allowed under shared ownership rules.

My main questions are:

• What legal rights do I have as a tenant in this situation? Assuming he will sign a contract with the landlord.
• If the council, housing association, or mortgage lender finds out that the property is being sublet without permission, what usually happens?
• Would tenants like me be entitled to proper notice (e.g. under eviction law / Renters’ Rights Act changes), or could we be removed immediately because the subletting itself is not authorised?

I’m mainly trying to understand whether I would still be protected by normal tenancy eviction rules, or if an illegal subletting situation could mean I have very limited protection.

Any advice or experience would be really appreciated.

gwynlas

You would have the same rights as a lodger in that you could be asked to leave at any time. I do not know if you would have any furher rights following the changes in the law so it is up to you whether you are prepared to take that risk. Any legal challenge would be by the HA or mortgage company against the landlord rather than yourself so it is unlikely you would be subject to eviction without notice

It would be unusual for the landlod to be given the right to sublet but in a shared ownership situation it might be because they are having difficulties in selling having had to move areas for work

QrizB

You would have the same rights as a lodger

Are they a lodger, though? The landlord lives elsewhere.

silvercar

So the owner will (in all probability) have breached the terms of their mortgage or shared ownership. The free holder or mortgage lender could take action against your landlord. That would take time. If whatever action they instigated doesn’t sort the issue (ie a lender demanding the mortgage be redeemed for breach of terms) it ends up in court. A lender could repossess, that would give you about 2 months rights under an act I can’t remember the name of, but it was written with tenants who are unwittingly caught in this situation by mortgagees who let without consent. Same with the freeholder, they could forecably take back the lease. They then become your default landlord temporarily while they make an attempt through the court to remove you. Again I would expect you to get 2 months notice from the courts. If you don’t comply with court orders to move out, it goes to bailiffs, incurring further delays.

You then would be able to take action against your landlord for breaching your tenant rights. So could get some costs back, but that doesn’t really make up for the hassle.

lincroft1710

If the landlord does not live on the premises and you share kitchen and bathroom with the tenant of the other room then it sounds like a HMO situation

martindow

https://forums.moneysavingexpert.com/discussion/comment/81959873#Comment_81959873

Is that so with only two tenants?

theartfullodger

Depends which country (Wales, NI, Scotland, England..). In Scotland a "lodger" has ten\nt rights.

Does shared ownership person have the right to have lodgers?? Any conditions from that right from the owner of the rest of the place??

Which country please??

FreeBear

https://forums.moneysavingexpert.com/discussion/comment/81959837#Comment_81959837

Certainly, in England, if the landlord lives elsewhere, then the "lodger" is a tenant in the eyes of the law with all the protections that that brings. An HMO would need three or more unrelated occupants, so HMO rules would not apply in this case.

I would strongly recommend that the OP looks elsewhere for accommodation. If this landlord is prepared to ignore his/her shared ownership obligations, quite likely legal obligations are also going to be ignored.

monkey-fingers

Blimey, this thread is a mess.

No. It's not an HMO. That would need 3 people. The Landlord does not live there.
No. You're not a lodger. You are a tenant. The Landlord does not live there.

In terms of "Can I be kicked out?" that's a really messy one.
There are various pieces of case law. Indeed, CAB suggest that you could be kicked out quite quickly, whereas Shelter suggest that it would still need to go to court.

A couple of solicitors suggest either too - although one says at least 4 weeks notice.
How it'll work with the new Tenant's Act, no-one knows. If it does need to go to court, then the same rules apply - it can't be done in the first 6 months and 4 months notice.

theartfullodger

Shared ownership implies the ultimate landlord (often council or housing association) owns the rest and the owner of the share pays rent to and is tenant of ultimate landlord. You should inform ultimate landlord or what is going on, the owner of the share may not have the right to have lodgers/tenants.

Does the person you (as lodger/tenant) pay rent to live there?? If not, regardless of which country, you are tenants not lodgers, regardless of what any agreement states.

Wot a messss

_Penny_Dreadful

https://forums.moneysavingexpert.com/discussion/6663750/what-rights-do-tenants-have-when-renting-a-room-from-a-landlord-with-a-shared-ownership

This will be an Assured Shorthold Tenancy (Assured Periodic Tenancy from 1st May) because your landlord lives elsewhere. You're right that it smells fishier than an Arbroath smokie but regardless of what the landlord puts in the contract you are and will be a tenant, not an excluded occupier. It is possible he has permission from the housing association to let the property but as he's doing it per room and keeping all the bills in his name makes me think otherwise.

If/when he's caught by the housing association they could take your landlord to court to forfeit his leasehold. When that happens you won't have much time left.

Unless you're desperate I wouldn't take the room and I'd grass the landlord up to the housing association.