The courts powers to transfer a tenancy come under the Family Law Act 1996 for those who are married, in a civil partnership or cohabiting. If you are married or CP, then this decision will usually be taken during your financial proceedings.
Virtually all tenancies can be transferred, however the length of the tenancy might dictate whether the application will be worthwhile – such as in the case of a short assured shorthold tenancy. If the court decides to transfer the tenancy it will vest in the new tenant from the date stated in the order.
The FLA1996 sets out the elements the court must consider and the landlord of the property will be informed of the application as the court will take into view the landlord’s position when making a decision. Whilst a landlord can object, the court still has the power to transfer the tenancy.
The court also has the power to order that one tenant pays compensation to the other for the loss of the tenancy and make orders about certain obligations and liabilities on the tenancy – for example if there are rent arrears the court can decide if one or other or both tenants are responsible for paying them.
Tenancies can also be transferred under a Property Adjustment Order. There are a variety of things to consider when deciding which application to make.
If you require further advice or assistance on this matter, please contact us.