Can you summarise what’s changed in mutual exchange? Your questions answered - .PDF file.
By Bukola Aremu
Pre Localism Act 2011, all mutual exchanges took place by deed of assignment. Post Localism Act, surrender and re-grant is the mechanism used for mutual exchange.
Mutual exchange is where two tenants assign their tenancy to one another, the result being that each tenant takes over the other tenant’s tenancy. So if a secure tenant exchanged with an assured tenant, new tenancies are not signed. On mutual exchange, the tenancy stays with the property, not the person.
The Localism Act 2011 provides that if a secure or assured tenant whose tenancy commenced before 1 April 2012 wishes to exchange their property with a tenant holding a flexible or fixed-term tenancy, the exchange will be achieved by surrender and re-grant of new tenancies…
Click on the link below to read the rest of the Shoosmiths briefing.