Q&As

Where a mother and father allow their child and the child’s friends to have exclusive possession of an outbuilding for business use, and there is an agreement to pay a monthly rent (albeit no rent is paid), what interest is likely to be created and how can it be terminated? In particular, if there is a lease, is forfeiture available or must the landlord serve a notice under section 25 of the Landlord and Tenant Act 1954?

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Published on LexisPSL on 19/07/2019

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

  • Where a mother and father allow their child and the child’s friends to have exclusive possession of an outbuilding for business use, and there is an agreement to pay a monthly rent (albeit no rent is paid), what interest is likely to be created and how can it be terminated? In particular, if there is a lease, is forfeiture available or must the landlord serve a notice under section 25 of the Landlord and Tenant Act 1954?
  • Nature of occupation
  • Periodic LTA 1954 tenancy
  • Forfeiture

Where a mother and father allow their child and the child’s friends to have exclusive possession of an outbuilding for business use, and there is an agreement to pay a monthly rent (albeit no rent is paid), what interest is likely to be created and how can it be terminated? In particular, if there is a lease, is forfeiture available or must the landlord serve a notice under section 25 of the Landlord and Tenant Act 1954?

Nature of occupation

It is important to distinguish between a lease (ie a tenancy) and a licence. A lease gives rise to a relationship of landlord and tenant, and is a proprietary right. A licence, on the other hand, is a purely personal right to occupy some premises and no security of tenure can arise under a licence. The court will look at the substance of the agreement to ascertain whether or not it is in fact a tenancy. See Q&A: Following termination by the licensor of a commercial licence to occupy, the licensee has remained in occupation for 14 months, paying rent to the licensor. The parties have been actively negotiating a new lease. The licensee argues that it has security of tenure. What is the nature of the licensee’s occupation of the property?

Assuming the agreement is a tenancy, it needs to be ascertained whether it is a

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