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10.12 Transfer to Tenancy in Common


Section 17A of the Defence Service Homes Act 1918 sets out the criteria for issuing a certificate of entitlement in joint names or as tenants in common.  Accordingly, a subsequent transfer to a tenancy in common may be approved subject to the requirements of section 22 being met.  The removal of the power to transfer to an ineligible person means that a transfer to a tenancy in common situation can now be effected only if the applicant transferee is an eligible person.  In reaching the conclusion in accordance with subsection 22(2) that in all the circumstances it is reasonable to issue a certificate in relation to the transfer, the tenancy equity rule specified in subsection 17A(2) is to be satisfied.  An application from an ineligible spouse to transfer to tenancy in common should be refused in accordance with subsection 22(3) of the Act.  An application from the eligible person where that person's proposed equity is to be less than the amount of the subsidised loan should be refused in accordance with subsection 22(2)(a) because, in all the circumstances, it is not reasonable to approve the issue of a certificate.  The circumstance which is unreasonable is the non-compliance with subsection 17A(2) of the Act.