contract-law rental-property homeownership
Breaking a housing association contract
<p>I own 45% of a part-ownership flat, shared with a large well-known housing association here in London, UK.</p>

<p>I pay a mortgage to my lender for the 45% and rent the rest from the housing association. In the contract it specifically states that I cannot let the whole flat or any room to anyone. I was wondering what penalty I would be risking if I were to take on a lodger for my spare room?</p>

<p>I understand why this kind of limitation is in place, but would I be at risk of losing my home or mortgage if I were caught, or would I more likely just be given a slap on the wrists and told not to do this again?</p>

<p>Many thanks for any insights!</p>

<p>As the housing association is a co-owner, and has the larger share, you can't legally take in a lodger without their permission. </p>

<p>However, what you might be missing is, you can't legally take in a lodger without the permission of your mortgage lender as well. </p>

<p>Lastly, you also need to talk with your insurance holder and get their agreement (insurance adjustment) as well. </p>

<p>The worst case scenario if you proceed to take a lodger without permission is foreclosure and you don't want that. </p>

<p>You might have gotten away with a lodger under the table, but having notified the housing association of your intentions / desires to take a lodger, they are now more prone to keeping an eye on you. </p>

<p>In your situation, I would not take in a lodger, without negotiating and getting a written consent from all relevant parties.</p>
