Peterborough Property Sale and Licence Transfer: What Landlords Must Know

Licences Are Non-Transferable

A property licence in Peterborough is a personal consent issued to a specific named licence holder for a specific property. When the property is sold, the existing licence terminates on the day ownership transfers. The purchaser cannot inherit, adopt, or continue operating under the seller's licence.

This means the buyer must submit a brand new licence application through the Home Safe portal and pay the full Part A and Part B fees — regardless of how recently the seller obtained their licence and regardless of how much time remains on the current scheme.

What the Seller Should Do

If you are selling a licensed rental property in Peterborough, your existing licence terminates on completion. You do not need to formally surrender or cancel the licence — it ends automatically when ownership transfers.

However, if the property will continue to be let (for example, it is sold with sitting tenants as a going concern), you should ensure the buyer understands that they need their own licence from day one. A property operating under a lapsed seller's licence is unlicensed, exposing the new owner to civil penalties of up to £40,000 and potential Rent Repayment Orders.

Include licensing status in the property information provided to the buyer's solicitor. The buyer's conveyancer should be checking the public register as part of their due diligence, but providing the information upfront prevents delays.

What the Buyer Must Do

If you are purchasing a rental property in Peterborough that falls within a licensing scheme, you must:

1. Determine which licence is needed — check whether the exact address is in a designated selective licensing area and how many tenants will occupy it
2. Submit an application through the Home Safe portal before or on the day of acquisition
3. Complete Yoti identity verification — the buyer (or their appointed UK-resident licence holder if they are overseas) must go through the biometric check
4. Upload all compliance documents — gas safety certificate, EICR, EPC, and for HMOs the fire risk assessment and floor plan
5. Pay the full Part A fee — £538 for selective, £588 for additional HMO, £367 for mandatory HMO

As long as you submit a complete ("duly made") application, you are statutorily protected under Section 72(4) or Section 95(3) of the Housing Act 2004 while the application is being processed. This means you can legally let the property while awaiting the licence decision, provided the application was submitted before or at the point when you began operating as the new landlord.

No Pro-Rata Fees or Reduced Rates

Licensing fees in Peterborough are not pro-rated. If the selective licensing scheme runs until 10 March 2029 and you buy a property in 2028, you pay the full £908 fee — and your licence expires on 10 March 2029, giving you barely a year of coverage. The same applies to the additional HMO scheme expiring on 25 January 2031.

Only mandatory HMO licences run for a full five years from the date of grant, since the mandatory scheme has no fixed expiry date.

This is a genuine cost consideration for buyers. A property purchased late in a scheme period carries the same licensing cost as one purchased at the start, but provides far less licence duration.

How Long Does Each Licence Last?

The three licensing types have different duration rules:

• Selective Licence: granted for the remainder of the scheme period, up to the fixed expiry date of 10 March 2029
• Additional HMO Licence: granted for the remainder of the scheme period, up to the fixed expiry date of 25 January 2031
• Mandatory HMO Licence: granted for a full five years from the individual date of issue — no scheme-level expiry

When your licence reaches its expiry date (whether scheme-driven or individual), you must apply for a new licence if the scheme continues or a successor scheme is in force.

Death of a Licence Holder

If the named licence holder dies, the licence terminates automatically. A statutory three-month Temporary Exemption Notice automatically comes into force from the date of death, giving the personal representatives time to arrange a replacement licence application.

If the personal representatives notify the council within six months, a designated next-of-kin or legal representative can apply for a replacement licence valid for the remainder of the original term.

Our Peterborough Landlord Licensing Guide covers the complete lifecycle of a Peterborough property licence — from initial application through to property sales, licence variations, and renewal — so you are prepared for every stage of ownership.

Frequently Asked Questions

Can the seller's licence cover the property until my new application is processed?

No. The seller's licence terminates on the day of sale. You need your own application submitted by that date. A duly made application provides statutory protection while it is being determined.

Do I get a discount on the licence fee if I am buying a property that was already licensed?

No. Peterborough does not offer discounts, pro-rata fees, or reduced rates for previously licensed properties. The full fee applies to every new application.

What happens if I buy a property and do not realise it needs a licence?

Not knowing by itself does not settle the matter. Section 95(3A) of the Housing Act 2004 provides a reasonable-excuse defence for a person charged with having control of or managing an unlicensed house, or being its landlord or licensor. Section 95(3B) separately gives superior landlords defences that include not knowing, with a reasonable excuse, that the house was licensable. If you discover the property may be unlicensed, get advice promptly.

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