Should I ask to be joint tenant, permitted occupier, or sublet from my friend - UK Real Estate?

[modraed]

I'm sorry this is a bit long.

I am an EU full time student in the UK, and about to complete my postgraduate studies in a few months. I would like to move in with a friend who is currently the sole tenant of a 2 bedroom flat.
I am already applying for jobs but I am worried that if I don't get something soon, my savings are running out and I will have to apply for benefits.

I would like to become a joint tenant with my friend but this will cost about £150 for checks, plus I may not pass the check, because my income (from sessional part time work) and savings are very low. Yet I can probably find a Guarantor. Any advice for this is welcome - it just seems that as joint tenant I will have the same rights and obligations as my friend, and if things become pretty bad I will be able to claim Housing Benefit.

I have been offered the option of becoming a permitted occupier, but to me it seems that on paper it looks like I'm not paying any rent, and I will then not be able to claim housing benefits. Now if I can prove that I pay rent to my friend, this will mean he is subletting a room to me. We are not going to do it without permission, of course, but even so I am not sure what the implications will be for me - and my friend, and the head landlord. For example, this will then look like additional income, and my friend will have to pay more tax (?) Or the head landlord may have trouble with insurance. I am just making some educated guesses here, so anyone with more legal knowledge would be of great help to me.

When all is said and done, what I really want to do is be a joint tenant. I think this would be the safest option for all three parties involved (me, my friend-prospective co-tenant, and landlord), but how likely is it that my application will be rejected due to insufficiet credit? What can I do about it?

Additional info: My friend is in an AST expiring Aug 31, and the landlord is happy for him to renew it, i.e. get a new AST for either 6 or 12 months. The landlord is also happy for me to move in either as a joint tenant or a permitted occupier, subject to the relevant checks. The property is managed through an agency who is responsible for the paperwork (hence the fee if I become a joint tenant, and my fear that the agency will reject me).

I am definitely planning to be ok with my obligations and pay my rent anyway - even if I come into financial difficulties and DON'T get any benefits I am prepared to borrow money to make sure my share of the rent is paid. I can imagine that many people just finishing their studies will be facing similar problems - not yet a job and steady income, but still have to live somewhere!

[fychan97]

If you become a 'lodger' or 'permitted occupier' this will give you less rights. For example if you did stop paying your rent, your friend could ask you to leave within a week and if you refused could simply change the locks and restrict your access.

If you become a joint occupier this gives you more protection, you would only be able to be evicted via a 2month Section 21 notice and court proceedings. You become jointly liable with your friend for the property and the rent. So for example if your friend stopped paying the rent, you become liable for that also. Same with damages to the property, this would also have joint liability.

With regards to the credit checks, it is normal for students to not pass initial credit checks. You may be required to supply a guarantor or supply a larger deposit ... this is up to the landlord or agent.

[ayize]

How about becoming the 'lodger'?

And your friend doesn't *have* to renew his contract, he can allow it to go onto a rolling tenancy, saving agent fees. .