Owning and/or Occupying Non-Residentially Qualified Property

Following the coming into force of the Housing (Jersey) Law 1949 (the "Housing Law") formal consent, initially of the Housing Committee but more recently of the Housing Minister is required for the purchase or leasing of property in Jersey. Consent will be granted if you have housing qualifications.

The Housing Law was enacted to control the sale and leases of land in order to prevent further aggravation of the housing shortage and conditions regarding occupancy of the property can be imposed on the grant of such a consent. However it is possible to either occupy, own or own and occupy property if you are not residentially qualified.

Index
1. Occupation by non-residentially qualified persons
2. Ownership of property by a non-residentially qualified person
3. Ownership and occupation by a non-residentially qualified person

1. Occupation by non-residentially qualified persons

1.1 As a lodger in a private house
It is possible to live as a lodger in someone’s private residence as you occupy as a lodger or licensee by way of licence rather than as a tenant under a lease. Usually this means occupying a bedroom and having use of shared facilities such as kitchen and bathroom. You have very limited security of tenure.

1.2 As a lodger in a registered lodging house
You can live as a lodger or a licensee in a registered lodging house. These are regulated by the Housing Minister and are self contained apartments which can be occupied by non-residentially qualified persons.

1.3 As a licensee in inherited property
Inherited property which was inherited prior to 10 March 2006 can be occupied by anyone as long as no lease is put in place. Generally these premises are occupied by way of licence but there are drawbacks in that the licensee has no security of tenure and also a licence can turn into a lease if effectively the occupier has exclusive possession of the property. The licensor therefore has to provide bona fide services and/or regularly inspect the premises and generally exert their ownership over the property. Any land that is inherited after 10 March 2006 is deemed to have been acquired subject to the condition that any existing unit of dwelling accommodation on the land or any unit subsequently created on the land shall not be occupied other than by the person who inherited the land or a person holding housing qualifications or any existing licensee of those premises. Please click here for further information.

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2. Ownership of property by a non-residentially qualified person

2.1 Share Transfer
It is possible to buy shares in a company which owns a block of apartments or indeed any other residential property as long as there are no restrictions on ownership imposed by the Housing Consent by which the company acquired the property. It is not however possible to occupy these properties (unless they fall under the category mentioned in paragraph 3 below) unless you have residential qualifications. Generally, there are many apartments that are for sale by "share transfer" and a non-residentially qualified person can own these shares but not occupy the apartment until they gain their residential qualifications.

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3. Ownership and occupation by a non-residentially qualified person

To own and occupy property is generally achieved either by inheriting property or buying shares in a company that owns property free of housing controls. The "loopholes" in respect of company property have now been "plugged" by the Housing Law with effect from various dates but as the Housing Law did not apply retrospectively there are still properties available in this category and are as follows:

3.1 Those acquired by a company prior to the coming into force of the Housing Law in 1949
A property which was acquired by a company prior to the coming into force of the 1949 Housing Law and is still owned by that same company is not subject to any Housing Consent and ownership of the property can be transferred by owning shares in that company. This loophole was plugged by the States on 28 July 2006 save for residential units already in existence prior to that date. 

3.2 Those inherited by a company prior to 9 June 1993
A property inherited by a company by will prior to 9 June 1993 transferred title to that property outside of the Housing Law. The shares of that company can be bought by a non-residentially qualified individual. This loophole was effectively plugged by an amendment to the Housing Law which took effect from 9 June 1993 whereby properties acquired by companies by inheritance after this date are deemed to be subject to a restriction on occupation by persons who qualify under Regulations 1(1)(a) to 1(1)(h).

3.3 Those acquired by dégrèvement prior to 9 June 1993
A property which was acquired by a company prior to 9 June 1993 by way of a subrogation in a dégrèvement.  A dégrèvement is a form of bankruptcy procedure whereby property vests in a creditor by an Act of the Royal Court rather than any transaction which required consent under the Housing Law. Again, this loophole was plugged at the same time as that in respect of companies inheriting property and therefore is only relevant in respect of properties acquired by way of subrogation of dégrèvement prior to 9 June 1993.

3.4 Property inherited by an individual
Property inherited by a non-residentially qualified individual can be owned and occupied by that non-residentially qualified person. As regards further licensing out occupation rights, please click here.
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