What Happens to My Tenancy After a Mutual Exchange?
When you swap homes, you don’t take your tenancy with you. Here’s what happens to your tenancy in a mutual exchange, what you take over, the protections that still apply, and the questions to ask your landlord before you sign.
When you swap homes, it's easy to think only about the bricks and mortar: the extra bedroom, the garden, the new area. But a mutual exchange also changes something less visible and just as important: your tenancy.
Here's what happens to it, and what to check before you sign anything.
You Usually Take Over The Other Tenant's Tenancy
In most mutual exchanges, you don't keep your own tenancy and move it to a new address. Instead, the two of you swap tenancies. You take over the tenancy of the home you're moving into, and the other tenant takes over yours.
This is done with a legal document called a deed of assignment, which both of you sign, usually at the landlords' offices. From that moment, the tenancy of the new home is yours, on the same terms the other tenant had.
What You Take Over
- The type of tenancy: for example a secure council tenancy, an assured housing association tenancy, or a fixed-term tenancy.
- The rent and any service charges for that home.
- The terms of the tenancy agreement, such as rules about pets, parking or alterations.
- The home as it is. Most swaps are "as seen", so any decorating, flooring or items left behind become yours to look after.
The previous tenant's rent arrears do not pass to you. Their debt stays with them, and yours stays with you. See Can I Do a Mutual Exchange With Rent Arrears?
When You Get A New Tenancy Instead
Sometimes the landlords don't use an assignment. Instead, each of you gives up your old tenancy and is granted a new one for the new home. This is called a surrender and re-grant, and it happens in a few situations:
- Protecting lifetime tenants (England): if you've had a secure or assured tenancy since before 1 April 2012 and you swap with someone on a fixed-term tenancy, the law says your landlord should give you a lifetime tenancy in your new home, rather than you taking over the fixed term.
- Swaps across nations, between England, Wales and Scotland, where the tenancies work under different laws.
- Some landlords' own policies, particularly housing associations, may grant a new tenancy as standard.
A new tenancy may come with different terms, and sometimes a different rent. Ask exactly what you'll be offered.
Things That Can Change
Your Security
A secure council tenancy and an assured housing association tenancy are both long-term, but the details differ, such as the grounds for possession. A fixed-term tenancy is reviewed at the end of its term. Know which you're moving into.
Right To Buy
Council tenants in England may have the Right to Buy, while most housing association tenants have the more limited Right to Acquire, or none. Swapping between the two can change what you're entitled to. If buying your home one day matters to you, ask before you swap.
Succession
Succession is whether someone in your household could take over the tenancy if you died. Rules depend on the tenancy type and its history, and an exchange can affect them. If this matters to your family, ask the landlord how it applies to the new tenancy.
Joint Tenancies
If you're joint tenants, you'll both normally need to agree to the swap and sign the paperwork. If only one of you is moving, talk to your landlord first, as that's handled differently.
Wales And Scotland
In Wales, tenancies are now called occupation contracts under the Renting Homes (Wales) Act 2016, and contract-holders can transfer them by exchange with their landlords' consent. In Scotland, a Scottish secure tenancy can be exchanged with the landlord's consent under the Housing (Scotland) Act 2001. The principle is the same: get the details in writing first.
Questions To Ask Before You Sign
- What type of tenancy will I have in the new home?
- Will I take over the existing tenancy, or be given a new one?
- What's the rent, and are there any service charges?
- Is there anything in the tenancy agreement I should know about, such as pets?
- Does the swap affect my Right to Buy or succession rights?
And one golden rule: never move, or hand over keys, before the paperwork is signed. Until then, you could end up without a tenancy at all.
The Short Answer
After a mutual exchange you usually step into the other tenant's shoes: their tenancy, their rent and their terms. Sometimes you'll be given a new tenancy instead, which can protect long-standing tenants. Ask your landlord the questions above, and you'll know exactly what you're agreeing to.
For the whole process, read How Does a Mutual Exchange Work? Step by Step, or check whether you can swap with our eligibility checker.