Q&As

A property is being transferred to two beneficiaries of a trust. One of the beneficiaries (party A) will reside at the property and the other (party B) will not. A wants to stay there for five years and B is agreeable to that. A will pay rates/insurance/utilities, but not any rent. In the absence of rent payable, what is the most appropriate way to document this? Would a licence be more appropriate than an assured shorthold tenancy? The intention is to document the occupation but not for A to accrue any additional rights to stay beyond the five-year term.

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Published on LexisPSL on 22/02/2018

The following Property Q&A provides comprehensive and up to date legal information covering:

  • A property is being transferred to two beneficiaries of a trust. One of the beneficiaries (party A) will reside at the property and the other (party B) will not. A wants to stay there for five years and B is agreeable to that. A will pay rates/insurance/utilities, but not any rent. In the absence of rent payable, what is the most appropriate way to document this? Would a licence be more appropriate than an assured shorthold tenancy? The intention is to document the occupation but not for A to accrue any additional rights to stay beyond the five-year term.

A property is being transferred to two beneficiaries of a trust. One of the beneficiaries (party A) will reside at the property and the other (party B) will not. A wants to stay there for five years and B is agreeable to that. A will pay rates/insurance/utilities, but not any rent. In the absence of rent payable, what is the most appropriate way to document this? Would a licence be more appropriate than an assured shorthold tenancy? The intention is to document the occupation but not for A to accrue any additional rights to stay beyond the five-year term.

In a scenario such as this, the legal mechanism to enable the occupation of A matters only in the event of a dispute. If A simply vacates the property after the expiration of the five-year period agreed with B, it does not matter whether A occupies as a licensee, as a tenant, or in some other respect. However, in order to protect against what would potentially be an acrimonious and expensive falling out in the event that A does not leave or asserts continuing rights, or conversely that there is a need for A to vacate within the five-year period, but they

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