A licence can sometimes be mistaken for a lease but they are very different.
A licence is permission to do something on the person’s giving the licence’s land and the most common type of licence within the conveyancing world is the licence to occupy. The right is personal and is not meant to confer an interest in the land it simple makes something lawful which without it would be unlawful i.e. trespass.
A licence to occupy can sometimes be used for the benefit of a buyer between exchange and completion and usually has strict terms such as being responsible for the utility bills during this period. A licence is usually enjoyed by the person granting the licence as there is no security of tenure in that the person who receives the licence cannot overstay their welcome and it can be brought to an end quite easily without any statutory rights to renew the licence as you would with a tenancy or lease.
Whilst a licence to occupy can arise in situations where the completion has failed but the seller allows the buyer to live in the property until the money clears on the next working day but in reality they are very much the last straw as sellers usually do not want someone to occupy their property until the money is in their bank.
To find out more about the license to occupy please contact Rebecca Gunn hereTalk to our legal team
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