Consent to Sublet in Rent to Rent:
What You Need and How to Get It

What Consent to Sublet Means in Rent to Rent

When you take on a rent to rent property, you are renting from a landlord and subletting to tenants. Subletting is only lawful if you have the landlord’s explicit permission to do so. This permission is the consent to sublet — and it must be in writing, unambiguous, and included in your contract with the landlord.

There are two layers of consent that can be relevant in a rent to rent arrangement:

• The landlord’s consent to you subletting — your Company Let Agreement must explicitly state that you have permission to sublet the property to individual tenants. This is the most fundamental consent in the entire structure
• The mortgage lender’s consent to the landlord subletting — most buy-to-let mortgages require the landlord to obtain their lender’s consent before allowing subletting or HMO use. This is the landlord’s obligation, but you should ensure it has been obtained as part of your due diligence

How to Get and Document Subletting Consent

For your Company Let Agreement with the landlord:

• Include explicit subletting permission — the agreement must contain a clause explicitly permitting you to sublet individual rooms (for HMO) or the whole property (for single let or SA) to occupying tenants. The wording must be unambiguous: ‘The Operator has the express right to sublet the Property to individual occupants during the Term’
• Specify the type of subletting — if you intend to operate as an HMO, the consent must specifically permit occupation by multiple unrelated individuals. General subletting permission does not automatically include HMO use
• Get the landlord to confirm mortgage consent — include a warranty clause in your agreement where the landlord confirms that their mortgage lender (if applicable) has consented to the subletting arrangement, or that no such consent is required

For the mortgage consent, the landlord should:

• Review their mortgage terms and conditions
• Contact their lender in writing and request consent to enter a Company Let Agreement permitting subletting
• Obtain written confirmation from the lender that this is permitted
• Provide this confirmation to you before you proceed

What Happens If You Operate Without Proper Consent

The consequences of operating without proper subletting consent range from serious to catastrophic:

• Breach of contract — subletting without permission is a breach of the landlord agreement. The landlord can terminate the agreement and seek possession of the property
• Invalid tenancy agreements — if your subletting is unlawful, your tenancy agreements with sub-tenants may be unenforceable. You cannot evict tenants using Section 21 if you have no legal right to let the property
• Mortgage breach — if the landlord’s mortgage prohibits subletting and they have allowed it anyway, the lender may call in the mortgage, threatening the entire arrangement
• Insurance invalidity — both the landlord’s buildings insurance and your HMO insurance may be void if the arrangement involves unlawful subletting