Comments have been made that these new rules seem unfeasible and onerous. Unless it falls within one of the exemptions set out below, the landlord will require a licence for an HMO from the local authority if: 1. it is three or more storeys and is occupied by five or more people forming more than one household (this is the national scheme); or. This field is for validation purposes and should be left unchanged. Our clients mother is dead and the father no longer lives at the property as he is in a bungalow. Room – Here you should identify which room the lodger is to have. 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. In clause 2.5 fill in the number of days or weeks notice. Clause 9.6 only applies if the agreement is on a fixed-term basis – if not, delete the whole clause. If for a fixed term, fill in the end date. Terms, conditions, ongoing charges and fees are agreed at the outset, removing much of the uncertainty from financial planning. For example, the law implies a requirement to allow the tenant ‘peaceful’ enjoyment of the property and certain maintenance obligations. Most likely in the garage only, and the only access the purchaser will have is to that area. In consideration of the Licence Fee hereinafter described, the Minister hereby grants to the Occupant, and their Dependants, a licence, beginning on _____, 20___, to use and occupy the residential Premises known as (_____) (herein referred to as the Premises). 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. Your email address will not be published. Clause 1.10 is optional – keep it if the lodger comprises more than one person, e.g. In consideration of the Licence Charge paid and received under this Licence Agreement, and of the obligations of the Licensee contained herein, the Licensor permits the Licensee throughout the duration of the Licence Agreement to occupy the Accommodation and to share in common with the other occupiers of the Residence, the Shared Facilities. Generally this template Licence to Occupy Residential Property should not be used for people living in an HMO – 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. Contents – You should list any contents of the room that the lodger is to have (e.g. There is also a ban on the lodger sub-letting the room to someone else. For a licence to occupy to exist, the agreement has to have all characteristics of a 'leasing or letting of immovable property'. With a tenancy agreement, the landlord has a range of responsibilities implied into the contract by law. a personal agreement between a property owner (Licensor) and an occupier (Licensee 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. Clause 7.3 refers to the owner’s obligations to ensure the property and room are safe. the occupation is for a short period of time - the licence agreement says the licensee must go after say, two weeks. We hate spam as much as you. 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. Licences of any type (whether residential or non-residential) are not within the scope of LBTT. BN1 1EJ. These licences are also used by landlords who own commercial properties from which businesses not owned by the licensor wish to run. Licence Fee – Insert the level of the charges. For example (a) terminating and evicting is much more difficult or regulated once a tenancy has been created and (b) any deposit would also need to be held by a proper third party. 4% to 8% over the base rate is normal. If the landlord fails to obtain a licence where one is required: 1. he commits a criminal offence and can be fined up to £20,000; 2. he cannot rely on the notice-only procedure to get possession from any shorthold tenant; and 3. the current or former occupiers can apply to a Residential Property Tribunal for repayment of up to 12 months’ rent. 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). Without the licence the occupier would be a trespasser. Understandably, they see a licence as a quick solution for owners and occupiers, when both are keen to get the property occupied. A licence gives you permission to occupy the property under certain conditions. Clause 2.2 refers to the common areas of the property that the lodger is permitted to use – fill in the details. 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. A licence can be fixed term or periodic. 2. you or a member of your family share your living room, bathroom or kitchen with the lodger. However, any incoming purchaser will need to ensure that a "licence" is a permissive right for a licensee to do something on a property, rather than a tenancy granting "exclusive possession". 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