Exchanges Carried Out Without Permission

If the mutual exchange goes ahead prior to approval or after approval has been refused the exchange is unlawful. This means that neither party has any legal interest in the property they have moved to. The tenants will lose their Security of Tenure as they are no longer occupying their original tenancy as their main and principle home. 

The Head of Service will (where appropriate in conjunction with the other landlord) decide whether to 

• Give permission for the exchange retrospectively
• Insist that the tenants return to their original homes
• Terminate the tenancies by serving a Notice to Quit on the original homes and seek repossession

The tenants will be responsible for a use and occupation charge equivalent to the rent and service charges whilst a decision is made regarding their tenancy.