Mutual Exchange
With long waiting times for transfers a Mutual Exchange can offer tenants the opportunity to speed up the move to a more appropriate home. It can also be a useful option if you want to move to another area. Mutual Exchange is where social landlord tenants agree to swap their homes.
The rules for Mutual Exchange are very simple
• If you are a Housing Association or Local Authority Assured or Secure tenant you have the right to exchange your home with another tenant
• Your landlord can only prevent the exchange on very specific grounds. An example of this is that the property is adapted for disabled use and the exchange partner does not require these adaptations. Significant overcrowding, under occupation or an active Notices of Seeking Possession are further examples of when a landlord may object to an exchange,
The procedure for Mutual Exchange is also very simple
• When you have found a partner both parties should contact their landlord to inform them they wish to exchange
• The landlords will provide each other with a Tenancy Reference to ensure there are no reasons why the exchange cannot be agreed and give formal consent to the exchange taking place
• All parties then need to agree a date where the Deeds of Assignment can be signed by both parties at both landlords. This should, where possible, take place on the same day.
• Once the Deeds of Assignment are completed the exchange is complete and you have become the tenant of the partners property and they of yours. You are now able to move.
A few points worth noting
• Exchanges do not have to be limited to two tenants. It is permissible to set up a ‘chain’ of mutual exchanges with more than two tenancies changing hands
• You are far more likely to find an exchange partner if you are looking for a smaller property than you currently have, than if you are looking for a larger one.
• Exchanges are arranged by the tenant, not the landlord.
• Although a Deed of Assignment is the formal way of completing a Mutual Exchange, some landlords prefer to issue a new tenancy. This is quite legal but you should make sure you are not forfeiting any tenancy rights by accepting a new tenancy.
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