Adding a Joint Contract-Holder

Where the tenancy is an occupation contract, a contract holder can be added at any time during the fixed term or periodic (s.49).

Landlord’s consent

The landlord must consent to add a joint contract-holder (assuming the fundamental term in the contract isn’t modified), and the landlord must not unreasonably refuse consent or consent subject to unreasonable conditions (s.84).

The contract-holder (or all of them, if more than one) is the instigator for adding a joint contract holder to the contract.

Section 49(1) provides (highlights added):

The contract-holder under an occupation contract and another person may, with the consent of the landlord, make that person a joint contract-holder under the contract.

The contract-holder (and the other person) must request in writing to obtain consent from the landlord.

The landlord may request information within 14 days to process a request. However, the requested information must be reasonable. In these circumstances, asking the person to complete an application form would suit the situation.

To decide reasonable consent, Schedule 6 of the Act must be considered in particular (but not exclusively) paragraphs 9 and 10.

Schedule 6 is extensive, and for more information, see the section "Landlord's Consent Under Occupation Contract", but some things which the landlord can consider relating to adding a contract-holder include:

  • The landlord’s interests, including financial interests (para 7(1)).
  • Whether the proposed joint contract-holder is a suitable contract-holder which includes if they are likely to comply with the contract and have complied with other occupation contracts (para 9(2)(a)).
  • Whether they are a member of the contract-holder’s family and, if so, the nature of the relationship (para 9(2)(b)).
  • Whether the proposed joint contract-holder is likely to become a sole contract-holder of the dwelling, and this may include any circumstances that would be relevant if the landlord were considering whether to make a new occupation contract for the dwelling with that person (para 9(2)(c)).

The landlord must give or refuse consent within one month of the latter of-

  • the day the request for consent is made, or
  • if the landlord asks for information, the day the information is provided.

If the landlord consents subject to conditions, the landlord must give written notice of the conditions at the same time as consent is given. If the landlord does not do so, the landlord is to be treated as having consented without conditions (s.84(8)).

If the landlord refuses to consent or consents subject to conditions, the person who made the request may ask for a written statement of the landlord’s reasons. If the landlord does not give a written statement of reasons within one month, the landlord is treated as having consented without conditions.

Furthermore, the person who requested consent may apply to the court because refusal to consent was unreasonable or the conditions are unreasonable (s.85).

Formalities

Assuming consent is given, the addition of a joint contract-holder may be effected only by a document signed or executed by each party to the transaction, including the landlord (s.51).

The landlord must also give the new contract-holder a written statement of the contract within 14 days (s.31(2)). 

If a contract holder was added under a converted contract before 1 June 2023, the statement must be given before 14 June 2023. A new contract holder from 1 June 2023 onwards (converted contract) must be given a new statement within 14 days.

If a person is made a joint contract-holder, they become entitled to all the rights and subject to all the obligations under the contract from the day they become a joint contract-holder (s.49(2)).

Note: The original occupation contract continues, and the dates and other information in the written statement have not changed. The new joint contract-holder is not required to agree with the written statement—it just needs to be given. No prescribed forms have been published for this purpose.

However, adding a new contract-holder through a new occupation contract is a sensible approach because the new contract holder requires all the information (such as written statement, deposit information, EPC, electrical report, etc.). Creating a new occupation contract with the new composition of names and providing everything simultaneously will be easier. For serving the no-reason notice, as long as a contract-holder remains from the original contract, the contract will be a substitute, and the landlord would not have to wait six months from the substitute occupation date to serve the no-reason notice. The six-month rule applies to the original contract occupation date.

A person moves in without first seeking consent.

If a person moves in without following the procedure, consent cannot be given by the landlord after the thing has been done (s.86(2)(a)).

The only way to allow the person to move in is to arrange a new occupation contract. Until then, the transaction (i.e., the person moved in) is not binding on the landlord, and the contract-holder is in breach of the contract (s.57(3)).

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