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What Is the Difference between a Licence Agreement and an Assured Shorthold Tenancy

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It is important to note that whether an agreement is designated by the parties as a license or lease does not affect whether it is a license or a lease. If the three elements mentioned above are present, it is a rental, whether you like it or not. It is therefore best to avoid disputes over employment status by having your consent (whether it is a license or a tenancy) documented to avoid potential future litigation. Different types of rentals give you very different rights: For a residential arrangement to look like a rental (and not a license), three things are essential: If a landlord prefers to grant a license, it`s best to make sure the license document is carefully prepared to make sure the court doesn`t consider the deal a rental. with unintended consequences for the owner. Lawyers for landlords and tenants say this is not always easy to distinguish between a license and a lease. However, you`re more likely to have a license if: On the other hand, a secure tenancy offers tenants much greater long-term ownership security, as they can stay in a property until they decide to leave or the landlord is taken possession of it for any of the reasons listed in the Housing Act of 1988. This usually requires a waiting period until a certain condition has occurred that allows them to apply for a property order, at para. B example if the tenants are in arrears of payment of the rent.

People who rent in Northern Ireland and are concerned about the terms of their deal can call our daily helpline for advice. Call 028 9024 5640 and select option 3 between 09:30 and 16:30 Monday to Friday. The agreement you have is very limited because you thought it was a simple license, so you didn`t specify the usual terms that would normally protect an owner in an AST. Your tenant is therefore not obliged to carry out repairs or comply with other obligations. He or she must destroy the place before you can get him or her out. If the difference between a rental and a license depends in part on whether or not exclusive ownership is granted, it is important to know what is meant by the term “exclusive ownership”. The term means more than just a job. If a tenant has exclusive ownership, he has the right to exclude all people, including the owner, from the property. There are exceptions for homeowners and access to properties in emergency repair situations. A licensee`s rights are lower than those of tenants with an AST, and the amount of information required to distribute a licensee is much less than that of a tenant. A licensing agreement is often more attractive to students as they are usually not required to pay for accommodation during the long summer holidays. It would be wise for it to be time to ask a lawyer to review the agreement before signing anything.

Secure rentals have been the standard rental offered to tenants with general needs for almost 3 decades. However, the lack of social housing and a change of government in 2010 led to consideration of the concept of lifetime rentals. The government`s response to this has been the introduction of flexible leases in the Localism Act 2011. These give councils the power to grant leases for a certain period of time (usually between 2 and 5 years). A lease agreement is the granting of a legal interest in land that confers exclusive ownership for a certain period of time. A license is simply a personal authorization that grants the license to occupy or do something on someone else`s property. For example, the rules your landlord must follow to chase you away or the repairs he must make. Use by boards was limited, and in 2014-2015, only 15% of leases granted were flexible leases. As part of the government`s localization program (the one in which they force local authorities to do what the government wants), the Housing and Urban Planning Act 2016 will require all new council leases to be flexible 5-year leases. “Old-fashioned” secure rentals should only be offered in exceptional cases. This part of the law is expected to come into force at the end of 2017.

It`s usually easier for your landlord to ask you to leave during a regular agreement. You should always follow the right process to hunt yourself. The last word It is not an exhaustive list of the types of rental used by social landlords, just the most common. And always be aware that what is at the beginning of a lease or license may not accurately describe the true relationship between the parties. When in doubt, always consult a lawyer (hopefully us), as the type of mandate has a decisive impact on your rights and obligations as an owner. A reasonable start is to accept that if you want someone to pay you to live in your home, your deal will almost certainly be a rental and not a license. The law states that it is a rental unless you can prove that it is a license. Rental or license No discussion of employment would be complete without a brief examination of the fundamental differences between a rental and a license.

Student residences are usually rented under a licensing agreement, as they offer more flexibility to landlords and tenants. The licence can be terminated by the landlord who issues a “notice of resignation”, which usually gives the licensee four weeks in advance to withdraw. If the licensee does not move, the landlord can ask the court to evict the licensee. Degraded leases were also introduced under the 1996 law, which gave social landlords the power to request the downgrading of safe or insured leases in the event of anti-social behaviour. If the court grants this request, the security of the term of office of this 12-month rental ceases to apply. If the resident continues to cause antisocial behavior during the period of degradation, the owner is free to terminate the rental with the appropriate termination. Conversely, if the tenant manages to comply with his rental for this period, the rental will be converted to fully secure or secure status after the expiration of the downgrading period. In Ashburn Anstalt v Arnold [1988 EWCA Civ 14.

Fox LJ reviewed this judgment, but concluded that the payment of Lord Templeman`s rent was not intended to be an absolute condition for a tenancy, and stated that if the landlord accepts rent from you to live in the property, any oral agreement you have, is considered a legal agreement. Get advice if you think your agreement contains abusive terms or if your landlord thinks you`re respecting something you don`t think is fair. If you want to live in a property or are a landlord looking for rental options, there is no direct answer as to whether a license or rental is the best option for you. With a license, the licensee does not receive a legal interest in the land, but receives permission to use the property. The license does not grant exclusive possession. These legal rights also include inheritance tax, i.e. leases can be passed on to spouses or family members after the death of the original tenant. The law also limited the basis on which the authority could claim ownership to a small number of reasons such as rent breakage, rent arrears, tenants` waste, etc. In order to end a secure tenancy, the landlord would have to prove that one of the “Schedule 2” grounds of ownership applies or that the tenant has lost the security of the property by not occupying the property more than their sole or principal residence. Our helpline has received many calls in recent weeks regarding illegal evictions.

In many of these cases, the landlord had provided the tenant with a “licence agreement” instead of a lease. However, the fact that a person`s contract designates him or her as a licensee does not outweigh the facts. If the investigation determines that a rental actually exists, the landlord must follow the appropriate legal process to regain ownership of the apartment. The rented premises can be a rental, although the accommodation is shared or is a single room. Insured rentals are similar to secure rentals in that they offer high security of tenure and effectively act as a lifetime rental. Insured tenants can benefit from rights such as the right to purchase (which reflects the right to sell) and receive limited inheritance tax. Although the legal inheritance rights of insured tenants are not as extensive as those of safe tenants, the Housing Corporation has made it clear that it expects housing associations to reflect these legal obligations in their leases through additional contractual rights. Many tenants are still struggling with the benefit of these extended rights. .