Do Co-Owners Need a Selective License to Sublet?

Question from Dibble, Do Co-Owners Need a Selective License to Sublet?

Answer from AI:

When it comes to subletting a property in Southwark, London, especially under a shared ownership arrangement with a registered housing association, understanding the requirement for a “selective license” is crucial. This is particularly relevant in areas where local councils have implemented selective licensing schemes to improve the standard of private rented sector properties.

Understanding Selective Licensing

Selective licensing is a scheme that requires landlords to obtain a license if they wish to rent out their property. This scheme is part of the Housing Act 2004 and is designed to ensure that rental properties meet certain safety and quality standards. The requirement for a selective license varies by local authority and is typically implemented in areas with high levels of poor-quality rental housing, high levels of anti-social behaviour, or an influx of migration.

Shared Ownership and Subletting

Shared ownership is a scheme that allows individuals to buy a share of a home (between 25% and 75%) and pay rent on the remaining share, which is usually owned by a housing association. Subletting in a shared ownership property is generally subject to the terms of the lease agreement with the housing association. Most housing associations have strict rules regarding subletting, often requiring the owner’s express permission or outright prohibiting it.

Do You Need a Selective License in Southwark?

If you are a co-owner of a house in Southwark under a shared ownership arrangement and are considering subletting, here are the key points to consider:

1. Check Your Lease Agreement: Before considering the need for a selective license, verify whether your lease agreement allows subletting. If subletting is permitted, the agreement may outline specific conditions that must be met.
2. Southwark’s Licensing Requirements: Southwark Council has implemented selective licensing in certain areas to ensure that private rented properties meet specific standards. You can find out if your property falls within a selective licensing area by visiting the Southwark Council’s Property Licensing page.
3. Shared Ownership Considerations: Even if your property is in a selective licensing area, the fact that it is under a shared ownership scheme with a housing association may affect the licensing requirements. It’s essential to consult with the housing association to understand their policy on subletting and licensing.
4. Legal Advice: Given the complexity of property law and the specific regulations that may apply to your situation, consulting with a legal professional is advisable. They can provide personalized advice based on the details of your case.

Conclusion

While selective licensing is a tool used by local councils to regulate the private rented sector, the requirement to obtain such a license when subletting a shared ownership property in Southwark depends on several factors, including the terms of your lease agreement and local council regulations. Before proceeding with any plans to sublet, ensure you have thoroughly researched and understood these requirements. Consulting with your housing association and possibly seeking legal advice are prudent steps to ensure compliance with all relevant laws and regulations.