Death of a Contract-holder and Succession

If a contract-holder of an occupation contract dies, the Renting Homes (Wales) Act 2016 ("the Act") changes the previous position of what happens to a tenancy after the death of a contract-holder.

Opting out (fixed-term)

A fixed-term occupation contract may provide that on the death of a sole contract-holder, they may transfer the contract during the administration of the contract-holder's estate.

Under the rules, the right to succeed and terminate on death does not apply if such a provision exists (s.139).

It's also possible for a fixed-term occupation contract to provide that on the death of a joint contract-holder, their rights and obligations may be transferred by the administration of their estate (s.142).

It's unlikely these provisions will be helpful for most landlords because waiting for an estate to be dealt with can take a long time.

To incorporate such a provision, you need to seek specialist advice.

This guide assumes no such provisions exist in the contract.

Who can succeed in the contract?

If there are joint contract holders and one dies, the occupation contract vests in the remaining survivors.

If a sole contract-holder dies, a priority successor has the first right to succeed in the occupation contract. If there isn't a priority successor, it falls to a reserve successor. If there are no priority or reserve successors, the contract ends after one month or earlier if notice is given by authorised persons (see later).

Who is excluded (cannot succeed)?

If the contract-holder who has died was themself a reserve successor to the occupation contract, no person is qualified to succeed them (s.74(2)).

A person is excluded if they had not reached the age of 18 when the contract-holder died.

A person is excluded if, within 12 months of the contract-holder's death, they occupied the dwelling (or part) under a sub-occupation contract except if-

they a priority successor, or
they are a reserve successor and are the spouse or civil partner (or live together as if they were the spouse or civil partner) of the contract-holder, and
the sub-occupation contract under which they occupied the dwelling or part ended before the contract-holder's death.

Priority successor

A person is a priority successor (s.75) if they-

are the spouse or civil partner of the contract-holder, or
lives together with the contract-holder as if they were spouses or civil partners, and
they occupied the dwelling as their only or principal home when the contract-holder died.

But no person is a priority successor if the contract-holder was themself a priority successor.

Reserve successor

A person is a reserve successor if they are not a priority successor, and:

are a family member of the contract-holder (s.76(1)(a)),
occupied the dwelling as their only or principal home at the time of the death (s.76(1)(b)), and
has lived with the contract-holder throughout 12 months before the contract-holder's death (s.76(3)).

The latter point about living with the contract-holder throughout the previous 12 months does not have to have been in the dwelling subject to the occupation contract.

A person is a family member if they are that person's-

parent,
grandparent,
child,
grandchild,
brother,
sister,
uncle,
aunt,
nephew, or
niece.

A marriage or civil partnership relationship is treated as a relationship by blood. A relationship between persons who have only one parent in common is treated as a relationship between persons who have both parents in common. The stepchild of a person is treated as their child (s.250(2)).

If the contract-holder was themself a priority successor to the occupation contract, the references to the contract-holder include the person the contract-holder succeeded (s.76(4)).

A reserve successor can also be a carer (s.77) if the following conditions are met:

at any time in 12 months ending with the contract-holder's death, they were a carer concerning the contract-holder or a member of the contract-holder's family who, at the time they provided the care, lived with the contract-holder,
they occupied the dwelling as their only or principal home at the time of the contract-holder's death, and
the carer has lived with the contract-holder throughout 12 months before the contract-holder's death, and at the time of death, there was no other dwelling which the carer was entitled to occupy as a home.

"Carer" means a person who-

provides or intends to provide a substantial amount of care for another person regularly, and
does not provide or will not provide that care because of a contract of employment or other contracts with any person (s.77(5)).

But, a person does not provide care because of a contract merely because they are given board or lodging or may become qualified to succeed as a reserve successor (s.77(6)).

More than one successor

If there is more than one successor, if one is a priority successor, the priority successor succeeds to the contract (s.78(2)).

If two or more of the persons are priority successors, the person who succeeds to the contract is (or the persons who succeed to the contract are)-

the priority successor (or successors) selected by agreement between the priority successors, or
if they fail to agree (or notify the landlord of an agreement) within a reasonable time, whichever of them the landlord selects.

If all the persons are reserve successors, the person who succeeds to the contract is (or the persons who succeed to the contract are)-

the person (or persons) selected by agreement between the reserve successors, or
if they fail to agree (or notify the landlord of an agreement) within a reasonable time, whichever of them the landlord selects.

If the landlord selects a priority or reserve successor (where they could not agree), the persons they didn't select may appeal to the court within four weeks of when the landlord notified the chosen person.

Effect of succession

The person who succeeds the occupation contract becomes the contract-holder on the latter of (s.79)-

one month from the death,
the day agreement is reached, or the landlord makes a selection,
if an appeal is made by a person who the landlord did not select, the day on which the appeal is finally determined

From one month after death until a person (or persons) becomes the contract-holder, any person qualified to succeed and who is living at the dwelling-

are not to be treated as trespassers concerning the dwelling, and
any liability under the contract is to be treated as joint contract-holders.

Written statement

When a successor takes effect as the contract holder, they must be provided with a written statement of the occupation contract within 14 days due to there being a "change in the identity of the contract-holder" (s.31(2)).

If there is a deposit, the scheme should be asked to change the name. It should be unprotected and re-protected under the new name if that is not possible.

All other legally required documentation should also be provided (such as the electrical report, gas safety record and EPC).

Ideally, the successor should be offered a new occupation contract and all the paperwork issued, like you would a new one. A new contract will be the most straightforward as all the paperwork, including the written statement, needs to be provided. If that's not possible, the written statement and documentation based on the same terms as the original occupation contract will suffice.

Substitute succession on early termination

Suppose a priority successor succeeds in an occupation contract. Within six months of the death of the preceding contract-holder, they give notice under the contract (four weeks' notice for periodic or break clause if one exists in fixed-term) or agree with the landlord that the contract should end. In that case, the contract does not end (as it usually would have) if one or more persons are qualified to succeed the preceding contract-holder (s.80(2)).

If no persons are qualified to succeed, the contract will end as per the notice given (see the contract-holders notice section).

Whether a person is qualified to succeed is determined as described earlier but ignoring the priority successor who has given notice (s.80(5)).

If one person is qualified to succeed, that person succeeds (s.80(3)); otherwise, the reserve successor selected by agreement between the reserve successors, or if they disagree (or fail to notify the landlord) within a reasonable time, whichever of them the landlord selects is the person who succeeds to the contract (s.80(4)).

If a successor is not selected, they may appeal to the court.

The date the person becomes a contract-holder under the substitute succession is the later of-

the date when the contract would have ended after giving notice (four weeks for notice during periodic or length of break clause notice)
the day agreement is reached, or the landlord makes a selection (where more than one successor)
the day on which the appeal is finally determined (if the successor who the landlord did not select appeals)

From when the contract would have ended after giving notice (four weeks for periodic) until a person (or persons) becomes the contract-holder, any person qualified to succeed and who is living at the dwelling-

are not to be treated as trespassers concerning the dwelling, and
any liability under the contract is to be treated as joint contract-holders.

Where the priority successor gives notice to the landlord within six months of the death of the preceding contract-holder or agrees with the landlord that the contract should end as outlined earlier, the landlord must, within 14 days from when the landlord receives the notice (or the day on which the agreement is made), give notice to-

the occupiers of the dwelling (other than the person who gave notice), and
any potential successors not occupying the dwelling whose address is known to the landlord (or in the case of joint landlords, any one of them).

The notice must-

state that the successor has given notice intending to end the contract or that they have agreed with the landlord to end the contract, and
explain the effect of section 80.

At the time of writing, there appears to be no prescribed form for this purpose (which is unusual as most notices required under the Act have a prescribed form).

Death of sole contract-holder

If there is no person qualified to succeed and the sole contract-holder under an occupation contract dies, the contract ends (s.155(1))-

one month after the death of the contract-holder, or
if earlier, when the landlord is given notice of the death by the contract-holder's personal representatives or the permitted occupiers of the dwelling aged 18 and over (if any) acting together.

But, the contract does not end if, at the contract-holder's death, a family property order has effect, which requires the contract-holder to transfer the contract to another person. A family property order is an order under (s.251)-

section 24 of the Matrimonial Causes Act 1973 (property adjustment orders in connection with matrimonial proceedings),
section 17 or 22 of the Matrimonial and Family Proceedings Act 1984 (property adjustment orders etc., after overseas divorce),
paragraph 1 of Schedule 1 to the Children Act 1989 (orders for financial relief against parents),
Schedule 7 to the Family Law Act 1996 (transfer of tenancies on divorce or separation),
Part 2 of Schedule 5 to the Civil Partnership Act 2004 (property adjustment orders in connection with civil partnership),
paragraph 9 or 13 of Schedule 7 to that Act (property adjustment orders etc., on overseas dissolution of civil partnership), or
an order under Schedule 1 to the Matrimonial Homes Act 1983 (as it continues to have effect because of Schedule 9 to the Family Law Act 1996).

If, after the death, the family property order ceases to have effect and there is no person qualified to succeed, the contract ends when the order stops having effect, or if later, as described above (one month after death or when a personal representative gives the landlord notice) (s.155(5)).

Converted contract

Where-

the tenancy was assured or assured shorthold and was converted to an occupation contract on 1 December 2022,
the sole tenant died before 1 December 2022, and
before 1 December, the tenancy devolved, or after 1 December, the converted contract devolves under the tenant's will or intestacy

The landlord may claim possession of the dwelling, relying on Ground 7 of Schedule 2 to the Housing Act 1988 after giving two months' notice specifying that Ground (para 29, Sch.12).

Last Reviewed: