Shared ownership leases do not allow subletting and shared owners are required to live in their home as their main residence. This is because the shared ownership scheme is a government funded scheme which is intended to help people into homeownership.
In exceptional circumstances we may be able to give permission to sublet for a limited period of time and we will follow the advice given in the Capital Funding Guidance on GOV.UK.
If we consider that you have an exceptional reason to sublet it will be subject to the following conditions:
- Permission to sublet is only for a limited time. Initially we will only agree to subletting for six months. At the end of the initial six month period, if shared owners want to continue subletting they will need to apply to us for an extension of our permission. We will consider extensions at six month intervals up to an absolute maximum of two years. After this length of time they will need to either be living in the shared ownership property or will need to sell it.
- It must be let on a six month fixed term Assured Shorthold Tenancy and the rent payable must not be more than the cost of the monthly mortgage, rent and service charge payments. We will agree to an addition of up to 15% on top of this to cover letting agent fees.
- We will not allow any subletting on a commercial basis such as holiday lets or Airbnb
- The tenancy agreement needs to mirror your lease in terms of what is and is not allowed. For example, in relation to not causing a nuisance, parking restrictions, rubbish disposal, pets. If sub tenants breach any terms of your lease , the shared owner will be held responsible for allowing the breach
- A reputable letting agent must be used to vet your tenants and to carry out the Right to Rent check as required by the Immigration Act 2014. A letting agent must be used to manage the tenancy. This is to minimise the risk of letting your property to tenants who will cause problems to you, us or neighbours, and to have a company experienced in managing tenancies to deal with any issues with your tenants including ending the tenancy when your permission to sublet expires
- Mortgage provider's written consent must be provided and we will need to see a copy of this. Shared Owners need to check with their lender, if they may charge for this and that they could charge a different rate of interest on the mortgage if it’s sublet
- The Shared Owner must provide their contact address and telephone number so we can send you correspondence and contact you if there are any problems with your property or tenants. If you will be living abroad we require a correspondence address in England or Wales
- You will remain responsible for all repairs to your property and for all charges payable to us
- You must not have any lease breaches e.g. rent and service charge arrears
- There is a fee for us providing consent to subletting your property
- All private rented properties in the Oxford City Council area must have a licence - more about this on our Selective Licensing pages.
If a request to sub-let is received from a serving member of the Armed Forces who is required to locate away from the area in which they live, we will support this subject to conditions above.
Legal enforcement action will be taken where we are made aware of a subletting arrangement that the leaseholder(s) does not have our express permission to sublet. This can result in the loss of your home.
Prior to applying for permission please contact the Home Ownership Officer at landlordservices@oxford.gov.uk.
