Subletting

On this page you can find information about: About subletting, applying to sublet your home, your role as a landlord and where to go for more information about letting your home.

About subletting

Shared ownership is a great way for people who dream of owning their own home in London to get on the property ladder. At ISHA, we have to ensure our homes go to those most in need who intend to use them as their principal homes. We do not sell shared ownership properties to those who plan to rent them out to make a profit, and shared owners do not have an automatic right to sublet their property.

We understand that there are occasions when you may need to sublet your home to alleviate significant hardship or where exceptional personal circumstances mean you will be away from the property for an extended period.

Getting permission to sublet your home

We will consider allowing you to sublet your home if it will help prevent or relieve significant hardship. For example, if you:

• cannot sell the property because it is worth less than the money you borrowed to buy it
• have medical needs or care for a sick relative, and subletting will help your situation
• have temporary employment, and it is too far from your home to travel to
• have a temporary contract to work abroad
• need to live away from home for a limited time for training or education
• are in prison
• are unemployed and need to limit your debts
• don't have a valid EWS1, which is preventing you from selling your home.

The above list is not exhaustive, and we consider each application on its merits. We may take legal action if you sublet your home without our permission.

Profiting from subletting

You cannot profit from subletting your home.

You should only charge your tenant the actual costs you have to pay in rent, service charges, mortgage costs, repairs, and any letting agency fees. We may ask you to provide evidence of these costs and the rent you charge.

Applying to sublet your home

As a shared owner, you must write to us to ask permission before subletting your home.

To request permission to sublet your home, you will need to provide the following information and supporting documentation:

• How long you intend to sublet for (we usually only allow subletting for a maximum of 12 months).
• The reason you want to sublet and supporting evidence such as an offer of a job, a letter confirming medical needs or an income and expenditure sheet showing you cannot afford to stay there.
• Confirmation from our mortgage lender has said you can sublet.
• (Where required) Confirmation that you have permission from the local authority to sublet.

If an agent is acting for you, you must also provide their details and contact numbers.

Telling you our decision

We will let you know our decision within 10 working days of receiving your application and evidence.

If we give consent^* it will be provisional based on us receiving a copy of the proposed tenancy agreement showing the rent, the tenancy start date and copies of a license to sublet form from the local authority (where applicable).

We will countersign the license to sublet and return a copy to you.

We will let you know how long you can sublet. This will usually be for no longer than 12 months.

If you want to extend the sublet for longer than 12 months, you must explain your reason to us.

If you sublet without our permission

If you sublet without ISHA's prior written consent, you are at risk of eviction and losing your shared ownership home (through forfeiture possession proceedings).

Legal advice

You should consider taking your own legal advice or instructing professional agents to act for you if you are letting out your home. 

ISHA cannot give you legal advice about the terms of the tenancy you are proposing to offer your private tenant or how to evict them if you need them to leave.

Your role as landlord

After you sublet your home, you will be legally responsible as a landlord for the behaviour of anyone living in the property. We may take legal action against you if your tenant is a nuisance and you do not take appropriate action.

You are also legally responsible for the safety of the property. You will need to:

• arrange for an annual gas safety inspection and certificate
• provide a valid NICEIC (electrical installation condition report)
• produce a valid EPC (energy performance certificate).

If your tenant(s) pays you a deposit, it must be registered with an independent agency such as the Deposit Protection Scheme .

If you use an agency, it is worth checking that it has landlord accreditation, such as the London Landlord Accreditation Scheme .

If we agree that you can sublet your home because it does not have a valid EWS1 or your block requires remediation following an EWS1 assessment, you will be required to inform your tenant of this.

If you sublet your home and you do not fulfil your responsibilities as a landlord, we will take action against you.

Evictions and grounds for possession

Tenants of private landlords can no longer be evicted using the section 21 (s21) Housing Act 1988 no-fault procedure. 

This means that any tenancy you grant to your tenant will be a fully assured periodic tenancy and subject to the Grounds for Possession set out in Schedule 2 of the Housing Act 1988.

You are at risk of being penalised by the local authority if you misuse some grounds for possession.

Re-letting your home to a new tenant

Ground 1

You cannot re-let your property to a new tenant for a minimum of 12 months under ground 1 (where you or a family member wish to reoccupy your home).

Ground 1A

Normally, you cannot re-let your property to a new tenant for a minimum of 12 months after using ground 1A (where you wish to sell your home) unless you fulfil the terms of the exemption which are:

1. Before you agree the tenancy, you tell everyone in writing who you are planning to rent to that: you are a shared owner and the prohibition from letting or marketing the property within the 12 month restricted period may not apply to a subsequent letting or grant of a licence of the property. You can use this assured tenancies template notice (MS Word, 13kb) to do this.
2. You inform ISHA in writing of your intention to sell before the date specified in the section 8 notice (the date by which you are asking your tenant to leave).
3. Before attempting to market your property for let or letting the property, you either get a Royal Institution of Chartered Surveyors (RICS) valuation to sell your home or advertise your home for sale (for example, through an estate agent).