Obtaining such a court order can take several months and incurs some court costs even if you are not using a lawyer to assist you. Furthermore, if you are a landlord or tenant encountering problems due to the wording of a licence to occupy document, we might also be able to help resolve these issues. They are much less formal than a lease, and so can be done more quickly and cheaply. If for a fixed term, fill in the end date. This inventory should then be attached to this agreement. Unlike for residential leases and property sale, there is little statutory regulation in this area. We are selling an unregistered property which was gifted to our client in 1994 by her mother and father. Licences can often be put in place at relatively low cost and usually without delay. Contact us at our London or Brighton offices – serving the whole of the UK – for more information about our services. You should set this at a sufficient level that it includes a proportion of the following: Payment Date – Fill in the day of the week or the date in each month when payment is due. This scenario often occurs when the Purchaser needs to move out of their current … Licences of any type (whether residential or non-residential) are not within the scope of LBTT. The tenant must check its tenancy agreement carefully before entering into this Licence. Generally this template will be suitable only for use in the following situations: 4. other lodging (not in the owner’s home) on a short-term or night-by-night basis. It is deliberately intended to avoid this Licence being classed as an “assured shorthold tenancy” or other tenancy agreement, but this will only work if the situation is genuine and this Licence is not being misused for a situation that is in reality a tenancy. This clause defines the main terms used in the agreement. If you or a member of your family do occupy the property where the lodger will live as your main or only home, then you may prefer our template Lodger Agreement instead. The fact that you hold a licence of the premises rather than a lease does not alter the way in which your landlord can cancel the licence. To qualify as an excluded licence you need the lodging to be one where: 1. you or a member of your family live at the property; and. If, as the owner, you do not live in the property, then the licence is not an “excluded licence” and, as a result, it is harder to evict a lodger who has overstayed (including because the term has expired or for non-payment of rent). This would normally be the same date the lodger is to start living at the premises. NB It is probably difficult for you to have utilities costs charged separately to the licensee based on use (unless you have installed separate meters), but, if this were feasible, then you could amend clause 4.1 to permit this. a couple. These licences are also used by landlords who own commercial properties from which businesses not owned by the licensor wish to run. a personal agreement between a property owner (Licensor) and an occupier (Licensee the accommodation is let on a furnished basis; the lodger will have use of his or her room and also some shared facilities in the property, such as living room, bathroom and kitchen; the owner or a member of his or her family do not occupy this property as their main or only home; and. I believe irrelevant but the owner has a contract … Clause 5.1 notes that you have received the deposit from the lodger. Possession Proceedings – What You Need to Know! HEALYS SOLICITORS ENHANCES ITS LEASEHOLD SERVICES TO SUPPORT EVERGROWING CHANGES IN THE PROPERTY MARKET, Employment Law Update – Non Competition Clauses. The occupier can get on and use the property whilst the property owner has someone to cover the occupational costs. However, if a fixed term is what you want, you can use the optional clauses in the template to do this. If there is such a lease, then: (1) the owner should notify the lodger from the outset of any relevant covenants that the lodger ought to comply with; and. Most likely in the garage only, and the only access the purchaser will have is to that area. However, there must be careful consideration when drafting to avoid the arrangement actually being a lease. : This Licence to Occupy Residential Property template presumes: If (a) the owner or a member of his or her family is not resident and (b) in practice the lodger cannot or would not be asked to change rooms, then you may in fact have a “tenancy” situation – this gives the lodger or tenant extra rights, and this Licence template would no longer be suitable for you to use (and some of its terms would be invalid, as they would clash with the rights given to the tenant under the Housing Acts). With a tenancy agreement, the landlord has a range of responsibilities implied into the contract by law. Other forms of short-term rights to use our properties are also available. 2. it is in an area designated by the local authority as subject to HMO licensing (this would be a local scheme). This would mean that any unfair terms that have not been individually negotiated might not be valid. A licence to occupy is a document which allows the proprietor of a residential property to retain ownership while another party lives in the property for a pre-determined amount of time. You can use our Licence to Occupy Residential Property template: A licence to occupy is a personal agreement between the licensor and the occupier (the licensee), whereby the licensor permits the licensee non-exclusive occupation of the premises for a short period of time, typically six or 12 months. A licence to occupy residential property is far more informal than a tenancy agreement and the licensee will not benefit from the statutory protections given to a tenant occupying property under a tenancy agreement. London: SRA No. We hate spam as much as you. If you are not charging for utilities costs separately from the licence fee under clause 4.1, then delete reference to them in clause 5.2.2. By continuing to use this site, you agree to this. Clause 2.2 refers to the common areas of the property that the lodger is permitted to use – fill in the details. If clause 7.4 (which requires the owner to stock the bathroom with soap and toilet paper for the lodger’s use) does not apply, please delete it. The licensee allows the purchaser to … Required fields are marked *, Healys LLP, Atrium Court, 15-17 Jockey’s Fields, London, WC1R 4QR Our Licence to Occupy Residential Property template is for use by an owner of residential property when taking in a lodger (but not one that will be living in the owner’s home). A lease is a longer-term right and can give the lessee the exclusive use of the property. Comments have been made that these new rules seem unfeasible and onerous. without force or the threat of violence – which would be a criminal offence in any case), for example by changing the locks, but if not you will need a court order for eviction. Select whether is it is payable weekly or monthly. The agreement will typically state that the tenant is not allowed to make changes to the property, such as repaint rooms, must make the landlord or estate agent aware of any repairs required in the property, and must leave the property in a good condition when they eventually move out. Clause 6.10 provides that the lodger shall not have overnight guests without specific permission from the owner – delete this clause if it does not apply. you do not have the right to occupy the space exclusively; and ; the property owner or other persons will still have access to the area you are using; No tax is due and a LBTT return does not need to be made. A licence to occupy is a document which allows the proprietor of a residential property to retain ownership while another party lives in the property for a pre-determined amount of time. 510079 Brighton: SRA No. This Licence for Lodger to Occupy a Room in Tenant’s Property should be used where a tenant is taking in a lodger. On the same day our client granted a Licence for the parents to remain living there until either death or notice in writing served by the Licencees (the parents) on the Grantor (our client). First Payment Date – Fill in the date the first payment is due from the lodger. Instead you should use our template Assured Shorthold Tenancy Agreement, as mentioned above. Clause 9.6 only applies if the agreement is on a fixed-term basis – if not, delete the whole clause. This licence is therefore suitable for any Australian State. A licence to occupy can be a useful tool where the parties are seeking a relatively informal arrangement for a short term without the burden of more onerous lease conditions. those on the inventory). For this situation, you should use our template Assured Shorthold Tenancy Agreement, which would more accurately reflect the actual arrangement, be valid and comply with the Housing Acts. Authorised and regulated by the Solicitors Regulation Authority. If access is provided to the whole house, the contract will likely require the purchaser to return the key to the Agent by a certain time. Insured Risks – The owner should insure the building and the owner’s contents on the inventory against the usual risks, such as flooding. These licences are also used by landlords who own commercial properties from which businesses not owned by the licensor wish to run. If the letting was a licence to occupy, it would not become one of these tenancies since the nature of occupation would still not fulfil all the requirements for a tenancy such as exclusive use. In the case of (a) any tenancy or (b) a non-excluded licence, the owner/landlord will always need a court order for eviction, and evicting without such a court order is in itself illegal (even without force or threats) and can lead to significant damages being payable to the tenant/lodger. furniture) in an inventory – see the reference to “Inventory” below. If this is not a licence for a fixed term, delete the words “until the end of the Term”. Healys LLP, In clause 6.4.2 amend the times if you wish to regulate differently when loud music or musical instruments can be played by the lodger in his room. 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