Going travelling for a year. Let or licence my flat?

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    Going travelling for a year. Let or licence my flat?

    Hi,

    I wonder if anyone can help me. I'm going traveling in March for a year or so. I own my flat and want to make money from it whilst i'm away. Its a two bed place and i currently have a lodger... but i think she might be leaving soon. I'd like to get two new people in. But here's my question:

    How should i go about doing it? I've done loads of research on difference between a license and a tenancy and understand the differences between the two. I'm edging towards a license because it seems like it is easier to get the person to leave when I get back (I'm going to give plenty of notice)... It also seems like there is loads of hassle to set up a tenancy - Gas Checks, Deposit Schemes, Home Insurance etc.

    My Mum lives nearby and is happy to manage the property whilst I'm away (she's managed property before).

    Has anyone been in this position before? Any advice much appreciated!

    #2
    Originally posted by dghyphenj View Post
    How should i go about doing it? I've done loads of research on difference between a license and a tenancy and understand the differences between the two.
    Well as far as I'm aware you'd have to let it on a tenancy, based on the information you've provided.

    See http://www.landlordzone.co.uk/blog/l...cense-or-lease

    Comment


      #3
      I agree, got to be a tenancy, not a licence. If it was so easy we'd all do it!

      You are letting the flat out, you will not be living there. Your tenants will have exclusive occupancy. I think you need to do some further research into what exactly the differences are, or you could find yourself in trouble!

      FYI

      It is important to be aware that the 'label' on the agreement will not determine the real status of the occupiers. So if you give your tenants a license agreement, it does not necessarily mean they are licensees.
      the main indicators of a tenancy, as opposed to a licence, are normally said to be:
      • exclusive possession
      • identifiable premises (The premises do not have to constitute an entire flat or house and can be as little as a single room)
      • for a term (The term of a tenancy can either be: fixed term (ie six months, one year etc) or periodic (usually from week to week, or month to month).
      • at a rent (although this is not essential)
      • subject to the requisite intention. (Where there is no intention to enter into a legal relationship, there can be no contract and hence no tenancy)

      People who stay in accommodation on a temporary, casual, or informal basis will be licensees , eg hotel guests, most hostel dwellers, and lodgers living with relatives or friends. A person will be a licensee if they do not have a right to exclude another person from their home or if they have to occupy accommodation for employment purposes (see below on service occupiers).
      The main instances where there will be a licence rather than a tenancy are where:
      • there is no intention to create legal relations or
      • there is no right to exclusive occupation or
      • the arrangement is a service occupancy.

      Comment


        #4
        Why not:
        a. let to mum; and
        b. include in her Tenancy Agreement a power for her to sublet?
        JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
        1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
        2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
        3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
        4. *- Contact info: click on my name (blue-highlight link).

        Comment


          #5
          Even if you did succeed in granting a licence it is not really going to help. This is because at the relevant time, i.e. when you return from your travels, you will not be able to fulfil the conditions that allow you to obtain possession without a court order. Obtaining a court order to get possession from a licensee takes just as long as to get possession from a tenant. Indeed, if you purport to grant a licence you are faced with the possibility that the tenant will argue that he has a tenancy and that the correct procedures have not been followed if you seek possession on the grounds that there is a licence. Further, if you are going to take deposits, you are in a bit of a quandary as to whether or not they need protecting.

          All in all, it is better not to muddy the waters and to grant tenancies. If they are ASTs then the procedure for obtaining possession is well-known and straightforward. Just make sure that your section 21 notices are given in good time so that you do not find yourself homeless when you return.

          Comment


            #6
            Originally posted by jeffrey View Post
            Why not:
            a. let to mum; and
            b. include in her Tenancy Agreement a power for her to sublet?
            Yes, but would a tenancy with mum exist, if mum was not using the property as her main residence (and would only visit to "manage the property")?
            The information in my posts is provided 'as is'. This is not intended to be legal advice. Legal or other professional advice should be sought before acting or relying on this information or any part of it. I will not be held responsible for loss or damage arising from errors in the information or the way in which a person uses the information on this . For more information on your query use the '' link at the top of this page. Agreements, Forms & Notices can be found .

            Comment


              #7
              Originally posted by jeffrey View Post
              Why not:
              a. let to mum; and
              b. include in her Tenancy Agreement a power for her to sublet?
              I have not thought it through, but it is not immediately apparent to me how this will help.

              Comment


                #8
                Originally posted by tom999 View Post
                Yes, but would a tenancy with mum exist, if mum was not using the property as her main residence (and only visits to manage the property)?
                No. I meant that- for the duration- mum should take up residence at the property (so becoming resident L).
                JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                4. *- Contact info: click on my name (blue-highlight link).

                Comment


                  #9
                  Ok. But, mum may not wish to live in a let property as post #1 implies she has her own residence. A LL managing property from a distance and being a resident LL can be two very different experiences.
                  The information in my posts is provided 'as is'. This is not intended to be legal advice. Legal or other professional advice should be sought before acting or relying on this information or any part of it. I will not be held responsible for loss or damage arising from errors in the information or the way in which a person uses the information on this . For more information on your query use the '' link at the top of this page. Agreements, Forms & Notices can be found .

                  Comment


                    #10
                    thank you all

                    Thanks very much for the info.

                    On the basis of what you've all said I think it's going to have to be AST. (My mum lives in her own property nearby so sublet isn't really a goer... but I liked the suggestion).

                    "I agree, got to be a tenancy, not a licence. If it was so easy we'd all do it!"

                    Therein lies the point! Guess I'd better stop looking for shortcuts and just get on with the paperwork etc.

                    Thanks to you all.

                    Comment


                      #11
                      Serve a ground 1 Notice before you let; this strengthens your repossession rights as an ex-owner/occupier.
                      JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                      1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                      2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                      3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                      4. *- Contact info: click on my name (blue-highlight link).

                      Comment


                        #12
                        If the property is let on a lodger agreement and the landlord goes on holiday for 6 months living in hotels is the property still his main home?

                        Comment


                          #13
                          A travelling L still has to have a home. If not at this property, where else could it be?
                          JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                          1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                          2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                          3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                          4. *- Contact info: click on my name (blue-highlight link).

                          Comment


                            #14
                            Originally posted by jeffrey View Post
                            A travelling L still has to have a home. If not at this property, where else could it be?
                            So doesn't that mean that the landlord in question could legitimately use the lodger agreement and it should not be viewed as an AST. Maybe I'm missing something.

                            Comment


                              #15
                              Originally posted by natt48 View Post
                              So doesn't that mean that the landlord in question could legitimately use the lodger agreement and it should not be viewed as an AST. Maybe I'm missing something.
                              In the context of this thread I think we need to distinguish between:

                              1. The place you call home

                              and

                              2. (To adopt the wording of the Protection From Eviction Act 1977) the place "the landlord or licensor occupies as his only or principal home".

                              The key word has to be "occupies". If the property is fully occupied (whether by tenants or licensees) on terms that preclude the landlord from occupying it in a way that it can reasonably be considered to be his home (whether principal or not) then I do not think he can fulfil any residency condition that requires him to be in occupation when the arrangement (whether tenancy or licence) comes to an end.

                              Comment

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