1. In December 2023 Barry owned a large 3 storey eight-bed–sitting room property. Barry had initially bought the property to let out the rooms so he could supplement his income as a teacher. Barry started going out with his current girlfriend Wiki and offered her the right to occupy one of the bedrooms for 6 months starting in January 2024.
However,
unfortunately for Barry the eight bed-sitting rooms were already occupied by
other residents. The first 2 floors were
occupied by students who had approached Barry as a group in September 2023 and
asked to rent the bed-sitting rooms paying £300 a month in rent. Each of the
students held their respective rooms under similar but separate written
agreements signed on the same day. Each document contained a clause stating
that “nothing in this document shall be construed as creating a tenancy” and a
further clause allowing Barry to move anyone else into each of the bed–sitting
rooms so they could be shared by two people. Barry also retained a key to
access the properties between 10am – 2pm and said it was so that he could clean
the rooms and charged the students an additional £50 each for cleaning services
which he carried out.
The
basement flat was occupied by Gloria who signed a similar agreement to the one
signed by the students, but was not charged the additional sum for cleaning.
Gloria has always cleaned the basement flat herself and Barry has never entered
the flat to do this.
Wiki
is now insisting Barry keeps his promise to allow her to move into the
property.
Advise
Barry on whether he can obtain possession of one of the bed-sitting rooms or
the basement flat using relevant statute and case law.
Section
B
Introduction
In
property law, a lease grants tenants long-term, exclusive possession rights
with statutory protections like security of tenure and eviction safeguards. In
contrast, a license provides occupants a revocable permission to use premises,
lacking transferability and substantial legal protections. This distinction
guides negotiations between landlords and occupants and influences procedures
for handling disputes to avoid legal conflicts.
To
help Barry accommodate Wiki in his property, we'll assess the occupancy status
of the students, Gloria, and Wiki herself, determining whether they hold leases
or licenses based on their agreements. This assessment will guide Barry in
taking the necessary legal steps to secure a room for Wiki while respecting the
rights of current occupants.
Students
on the First Two Floors
Legal
Status of Occupancy: The students pay £300
monthly for bed-sitting rooms under agreements explicitly denying tenancy but
allowing room-sharing and Barry's cleaning services.
Certainty
of Term and Exclusive Possession: In Antoniades v
Villiers [1990] 1 AC 417, Mr. Antoniades, the owner of a flat, agreed with Mr.
Villiers and Ms. Bridger, a couple, to occupy the premises. They signed
separate but identical agreements the House of Lords ruled that an agreement labeled
as a license was a lease because the occupants had exclusive possession,
despite a clause allowing the landlord to introduce other occupants, which was
deemed a sham. This principle suggests that Barry’s students and Gloria might
have leases due to their exclusive possession, regardless of the labels on
their agreements. Barry should reclaim a room from the students to accommodate
Vicky, as their agreements may be seen as leases under this precedent.
The
Intent of the Parties and Legal Implications: In
Ashburn Anstalt v Arnold [1989] Ch 1, Arnold, a tenant, occupied a shop under a
lease. When Ashburn Anstalt acquired the freehold interest in the property,
they allowed Arnold to continue occupying the shop under an agreement. The
court ruled that a deal labelled as a license could be considered a lease if it
granted exclusive possession for a term at rent, regardless of the label. In
this case, the agreement allowed the tenant to remain in the property without a
formal lease, but the court found that the agreement's substance created a
tenancy due to the tenant's exclusive possession.
This
principle is relevant for Barry: while the students are likely licensees due to
Barry's retained access, Gloria's exclusive possession of the basement flat
makes her a tenant. Applying this understanding, Barry can serve the
appropriate notices and comply with property laws to accommodate Vicky.
Gloria
in the Basement Flat
Legal
Status of Occupancy: Gloria occupies Barry's
basement flat under an agreement similar to the students', with regular use and
provisions for Barry's cleaning access.
Exclusive
Possession and Practical Considerations:
In Markou v Davies [2004] EWCA Civ 381, Arnold was a tenant occupying a shop
under a lease when Ashburn Anstalt acquired the freehold interest in the
property and entered into an agreement allowing Arnold to continue occupying
the shop. The contract specified that Arnold could remain in the shop rent-free
until given one quarter’s notice to vacate and was labeled as a license rather
than a lease, the court found that despite an agreement allowing the landlord
access to cleaning, the tenant had exclusive possession as the landlord did not
exercise this right. Applying this to Barry's situation, Gloria may similarly
have exclusive possession of the basement flat if Barry has not been entering
for cleaning, suggesting she is a tenant rather than a licensee.
Lease
vs Licence Determination: Gloria's legal status—whether as a tenant with
a lease or a licensee—depends on the extent of her exclusive possession and the
court's interpretation of the agreement terms. Practical arrangements and the
nature of Barry's access to cleaning will influence this determination.
Legal
Implications: If Gloria maintains exclusive
possession without Barry exercising his right to enter, similar cases like
Antoniades v Villiers [1988] suggest she could be considered a tenant despite
agreement clauses suggesting otherwise. To evict Gloria, Barry would likely
need to serve a Section 21 notice under the Housing Act 1988, providing a
minimum of two months' notice after any fixed term or during a periodic
tenancy.
Vicky
Issue:
Introduction
of Vicky to the Property:
Barry's
current challenge involves accommodating his girlfriend, Vicky, within the
property where the students and Gloria currently reside.
Legal
Implications and Options for Accommodation:
Barry
needs to assess whether he can accommodate Vicky within any of the existing
rooms or flats currently occupied by the students or Gloria.
He
must consider the legal status of each occupant (lease or license) and the
applicable statutory and contractual rights for obtaining possession or making
arrangements for Vicky's accommodation.
Practical
and Legal Considerations:
Depending
on whether the occupants hold leases or licenses, Barry's options for
accommodating Vicky will vary.
He
should consider negotiating with the current occupants or seeking legal advice
to ensure compliance with all legal requirements and minimize any potential
disputes.
ADVICE
TO BARRY
Students
on the First Two Floors and Gloria in the Basement Flat:
In
Street v Mountford [1985] UKHL 4, the court emphasized that exclusive
possession is crucial in determining whether an agreement constitutes a lease
or a license. Despite any labeling in the agreement, it legally qualifies as a
lease if the occupant enjoys exclusive possession. Applying this precedent to
Barry's situation with the students on the first two floors, where Barry
retains rights to enter for cleaning and introducing third parties, they likely
do not have exclusive possession, aligning them more with licensees than
tenants under Street v Mountford. Therefore, Barry can proceed with eviction
using a 28-day notice under the Protection from Eviction Act 1977, as they lack
the exclusive possession required for a lease.
Despite agreements disclaiming tenancies,
Barry's control implies a licensee status (Antoniades v Villiers [1990] 1 AC
417, Ashburn Anstalt v Arnold [1989] Ch 1). Therefore, Barry can proceed with a
28-day notice under the Protection from Eviction Act 1977 for the students,
considering their lack of exclusive possession.
Conversely,
Gloria's exclusive possession of the basement flat suggests she is a tenant
with stronger legal protections (Antoniades v Villiers [1990] 1 AC 417, Aslan v
Murphy [1990] 1 WLR 766, Markou v Da Silvesa [1989] 1 WLR 1358). Barry must
follow the Section 21 notice procedure under the Housing Act 1988 to evict
Gloria, ensuring at least a two-month notice period post any fixed term.
Advice
to Accommodate Vicky:
To
accommodate Vicky promptly and legally, Barry should regain possession of a
room from the students, who are licensees and can be asked to vacate with a
28-day notice. This approach minimizes potential legal disputes and ensures
compliance with legal requirements.
Overall
Conclusion
Barry
faces legal complexities with leases and licenses involving students, Gloria,
and Vicky. The students are likely licensees due to Barry's retained access for
cleaning and introducing third parties, lacking the exclusive possession
required for a lease. He can evict them with a 28-day notice under the
Protection from Eviction Act 1977. Gloria, having exclusive possession of the
basement flat, is a tenant with strong legal protections, requiring a Section
21 notice for eviction under the Housing Act 1988. To accommodate Vicky
efficiently, Barry should reclaim a room from the students, ensuring compliance
with property laws and understanding lease and license distinctions crucial for
effective property management.
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