Mutual Exchange for Lifetime Tenants
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1 Mutual Exchange for Lifetime Tenants By acting with a business head and social heart, together we achieve our mission to enhance life chances by helping people to fulfil their potential and live better, more independent lives. 1 Who does this policy apply to? 1.1 This policy applies to mutual exchanges where both tenants are lifetime tenants including: Lifetime secure tenants Lifetime assured and assured protected tenants. 1.2 Starter tenants cannot mutually exchange their home because their tenancy agreement does not permit this. They can exchange once they have passed their probationary period of their tenancy. 1.3 This policy does not apply where one of the tenants exchanging has a fixed term or flexible tenancy. This is set out in our Mutual Exchange for fixed term tenants policy. 1.4 In this policy and procedure, Circle Housing ( we, us ) refers to all Circle Housing Registered Providers. 2 What is a mutual exchange? 2.1 Mutual exchange can be a good way of moving to a bigger or smaller home, or to another part of the country without having to wait on a transfer list. 2.2 A traditional mutual exchange is when two or more tenants swap homes and tenancies with each other by assignment. 2.3 We are committed to providing a mutual exchange service that is fair for all tenants involved in the exchange. There are many websites available and many different ways tenants can find an exchange partner. See procedures for more information. 3 Our approach Secure tenancies 3.1 Secure tenants have the right to assign their tenancy by way of exchange under Section 92 of the Housing Act 1985 as amended by Section163 of the Local Government and Housing Act Mutual Exchange for Lifetime Tenants Policy January 2014 Page 1 of 7
2 Assured tenancies 3.2 Assured including affordable rent tenants the right to assign by way of exchange as a contractual right in the tenancy agreement. 3.3 An exchanging tenant takes on the new tenancy in its entirety, with all of the rights and obligations of that tenancy, including the rent, whether it is affordable rent or social rent. 3.4 This means that if a social rent tenant swaps with an affordable rent tenant, they will get an affordable rent tenancy and give up their social rent status. 3.5 In the same way, the affordable rent tenant swapping with the social rent tenant will take on the social rent tenancy and social rent rate. 3.6 An outgoing Circle Housing tenant who is leaving us to become the tenants of an external landlord, will be subject to that landlord s policies. Assured furnished tenancies 3.7 Assured furnished tenants have the same rights as assured tenants, but tenants taking over the tenancy by way of mutual exchange must take on the furniture and related charges. The departing tenant must leave all furniture in the home when they leave. Protected assured tenancies 3.8 Protected assured tenants have the right to assign their tenancy by way of exchange under Section 92 of the Housing Act 1985 as amended by Section163 of the Local Government and Housing Act This right is protected and outlined in their transfer and tenancy agreement. 4 How to apply for a mutual exchange Processing mutual exchange requests 4.1 When a tenant finds someone they want to exchange homes with they must apply to us in writing. 4.2 The tenant can exchange homes with: Another secure or assured (non-shorthold) tenant or fixed term tenant of the Landlord (Circle Housing) A secure or assured (non-shorthold) tenant or fixed term tenant of another private Registered Provider A tenant of a Local Authority A tenant of a New Town Mutual Exchange for Lifetime Tenants Policy January 2014 Page 2 of 7
3 Joint tenancies 4.3 Joint tenants must both consent to exchange and sign all relevant paperwork. How long does it take? How long does it take? 4.4 We must grant or refuse the exchange within 42 days of receiving all applications. This is a statutory requirement and the decision must be in writing. What will we do? 4.5 We will always ask for references for any tenants who are exchanging. 4.6 All parties (exchange partners) must also have written permission from their landlord and must have the right to exchange. Is there any help available? 4.7 Tenants who are moving to a smaller home through mutual exchange may be entitled to help moving. All tenants are advised to check with their landlord first. 5 Important Considerations 5.1 When lifetime assured tenants and lifetime secure tenants mutually exchange homes they will literally swap their home and tenancy. 5.2 This means some tenants may end up with a different type of lifetime tenancy (with different rights) and rent levels. 6 Under-Occupation Making the best use of our homes 6.1 Where proposed mutual exchange partner will under-occupy by one bedroom, they will be required to sign an Under-Occupation Declaration Form. 6.2 This confirms that they understand that the property is too large for their needs according to the Government s size criteria. It also confirms that if they claim a benefit or credit to help pay the rent, this will not cover the whole amount and they will be required to make up the shortfall. See Procedures. 7 Refusing a Mutual Exchange 7.1 We can refuse consent to exchange homes for all the reasons set out in Schedule 3 of the Housing Act 1985 (below) as well as the reasons set out below of this policy. Mutual Exchange for Lifetime Tenants Policy January 2014 Page 3 of 7
4 Ground 1: Possession order outstanding 7.2 Where the tenant or their exchange partner has an outstanding possession order against them. Ground 2: Possession proceedings outstanding or Notice of Seeking Possession (NOSP) in force 7.3 Where possession proceedings have been started against the tenant or their exchange partner. Ground 2a: In respect of the tenant or the proposed assignee or a person who is residing with either of them 7.4 Where the tenant, their exchange partner or someone living in either household has a relevant order relating to anti-social behaviour against them. Ground 3: Under-occupation 7.5 The accommodation is substantially bigger than the exchange partner needs. We define substantially bigger as more than one bedroom. 7.6 We will allow proposed exchange partners to under-occupy by one bedroom but no more than this. Any proposed exchange partners will required to sign an Under-Occupation Declaration Form. Ground 4: Suitability 7.7 The size of the home is not suitable for the needs of the proposed exchange partner. 7.8 We will not allow proposed exchange partners to overcrowd to any degree. Ground 5: Non-housing accommodation or employment 7.9 The building is not a dwelling house or is tied accommodation. Ground 6: Conflict with charitable aim 7.10 The landlord is a charity and the proposed exchange partners would conflict with the objects of the charity. Ground 7: Accommodation designed for the disabled 7.11 The home has been adapted to make it suitable for people who are physically disabled and the proposed exchange partners do not need these adaptations. Mutual Exchange for Lifetime Tenants Policy January 2014 Page 4 of 7
5 Ground 8: Accommodation designated for special needs e.g. Sheltered or supported 7.12 The landlord has designated these homes for special needs. e.g. Sheltered or supported Ground 9: Accommodation in group designated for special needs 7.13 The home is designated to be let to people with special needs and a specialist facility or social service is provided in close proximity to assist residents. The proposed exchange partner does not need these services. Ground 10: Management Agreement 7.14 The home is the subject of a management agreement that means that at least half the people living in the homes are members of the association, and the proposed exchange partner is neither a member, nor willing to become a member of the association. 8 Additional Grounds for Withholding Consent 8.1 These include planning and any other reasonable reasons for refusing consent for lifetime assured and assured protected tenancies. (See below) Planning 8.2 Any relevant planning agreements relating to the purpose for which the premises are provided including but not limited to: Miscellaneous Section 106 local connection restrictions Any planning agreement restrictions that affect the local allocations or lettings policy A designated supported housing property: the incoming tenant s need for the support service will be assessed before a decision is made to allow the exchange Where there is a head-lease with any covenants binding the tenancy 8.3 Where money has been exchanged between partners to facilitate the swap. 8.4 Exceptional circumstances where it would not be reasonable to consent to exchange. (These decisions must be approved by the relevant Assistant Director.) 8.5 We will not refuse an exchange unreasonably. Mutual Exchange for Lifetime Tenants Policy January 2014 Page 5 of 7
6 9 Unauthorised Mutual Exchange 9.1 If a mutual exchange takes place without our (landlord) consent we will treat the occupants as unauthorised occupiers in line with our Abandonment and Absent Tenants Policy. 10 Property Damage and Repairs 10.1 We will complete all repairs that are our responsibility when they are reported to us before the exchange takes place The outgoing tenant is responsible for repairing, replacing or paying for any repairs that they have caused Where there is unrepaired tenant damage, the exchange may be refused Once all pre-exchange notified repair issues have been resolved, the property is taken as seen. We will not undertake any remedial repairs or replacements that were noted prior to the exchange for one year after the exchange. 11 Health and Safety Gas, solid fuel or oil safety 11.1 There must be a gas, solid fuel or oil inspection before and after all mutual exchanges Before the exchange takes place there needs to be a gas, solid fuel or oil safety inspection for the home. It is the outgoing tenant s responsibility to allow the contractor into their home. If the gas, solid fuel or oil inspection is not done then the exchange cannot take place The incoming (new) tenant is responsible for allowing access for the gas, solid fuel or oil safety check. This must be completed within 72 working hours of moving in. See Gas Safety and Accessing Customer Properties policies for more information. Electrical Safety 11.4 We must do an electrical safety inspection before the exchange can go ahead. It is the outgoing tenant s responsibility to co-operate by allowing the contractor access In the event electrical works that need to be completed that are our responsibility we will work with both exchange partners to come up with a suitable solution. This will be managed on a case by case basis. 12 Equality, Diversity and Inclusion 12.1 At Circle Housing, we have adopted equality, diversity and inclusion as core values and place all our policies in the context of the following objectives: Mutual Exchange for Lifetime Tenants Policy January 2014 Page 6 of 7
7 ensuring that all our customers and staff are treated with dignity and respect ensuring that the opportunities we provide for learning, personal development and employment are made available on a non-discriminatory basis providing a safe, supportive and welcoming environment for staff, customers and visitors 12.2 We seek to be a genuinely inclusive organisation and our aim is to integrate equality and diversity in all aspects of our day-to-day activity We are committed to supporting customers and staff access information in a way that suits individual needs. Please get in touch with your local office to discuss this We welcome text relay calls. Customers should dial first and then the number that they require. Mutual Exchange for Lifetime Tenants Policy January 2014 Page 7 of 7
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