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I own 45% of a part-ownership flat, shared with a large well-known housing association here in London, UK.

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?

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?

Many thanks for any insights!

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

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

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

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

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.

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

AudreyW
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