UK LAND LAW LEASES AND LICENSES

UK LAND LAW LEASES AND LICENSES

What (if any) formal documents are necessary to establish a lease of land or a licence to occupy land?

What will happen if the freehold owner of land that is subject to either a lease or a licence transfers freehold ownership to someone else?  Will the new owner be bound by the lease/licence?

Jeff owns the freehold to an empty house in Colchester. Troy learns of the property and asks Jeff if he can be a lodger there, as he is looking for a new place to live. Jeff says that is fine, but that he is also going to let his friend Annie stay there. Troy and Annie then sign a written agreement saying they can stay for 12 months, paying £800 per month in total. The paperwork also says that Jeff can have access to the property to perform maintenance, and to show around prospective new tenants in the final two months (so long as he gives 24 hours’ notice). The agreement has no other clauses. After staying for four months, Troy and Annie begin a whirlwind romance and decide to move somewhere more romantic. They execute a deed saying they assign their ‘lease’ of the property to Shirley. Having learnt of this, Jeff is uncomfortable with Shirley staying there because he thinks she cannot be relied upon to make the payments. Jeff believes Shirley has no right to stay at the house, and that Troy and Annie are still liable for the rent.