DENNING LAW SCHOOL – ABDULQADIR NAEEM

PROPERTY LAW – PAST PAPER QUESTIONS

LEASE / LICENSE

Q) Several years ago Leo, an artist, bought and converted Church House into two self-contained units,
a flat and a studio, each having its own separate entrance. When Leo’s elderly mother needed care he
moved to live with her in her house. He therefore advertised the flat in Church House on the notice
board at the local university. Connie, an art student, replied. Leo agreed that she and her partner,
Dave, could occupy the flat for four years. He drew up separate ‘occupation agreements’ for them to
sign. Each agreement contained the following terms: ‘(a) Each occupant is liable for their share of the
total occupation fee of £750 per month, unless the other occupant paid it all. (b) No occupant shall
allow guests to stay overnight without first obtaining the owner’s prior written consent. (c) The
owner will provide a supply of clean towels and bed linen every week. (d) The owner will retain a
key to the flat.’ Before Connie and Dave signed their copies of the occupation agreement Leo
explained that he would not be expecting them to get written permission if occasionally a university
friend of theirs wanted to stay overnight. When Connie and Dave moved into Leo’s flat they shared a
bedroom. Leo had assumed that they were just good friends studying on the same degree course and
would therefore be occupying separate bedrooms. Last year Leo’s cousin, Tracey, an artist, was
evicted from her studio. Leo therefore agreed that Tracey could occupy the studio at Church House
‘until you find a permanent studio of your own to buy’. Tracey moved into the studio and each month
has paid the nominal sum they agreed. Victoria has now offered to buy Church House from Leo. She
has insisted the property must be empty before any sale takes place. Leo therefore wants to know
what, if any, property rights Connie, Dave and Tracey enjoy in respect of the flat and studio. Advise
Leo. (2019 Zone B level 5)
Q) In 2017 Lilly started an English and Drama degree course at Borchester University. Her mother,
Elizabeth, purchased a house close to the university campus for Lilly to live in. The main house
comprised two ensuite bedrooms, a living room, and a kitchen. There was also a summerhouse
located in the back garden with its own kitchen and shower. Elizabeth told Lilly that she would need
to find somebody to share the house. Lilly persuaded her boyfriend, Russ, to move into the main
house with her. They signed identical documents with Elizabeth, although Russ signed a day later
than Lilly because he was at a job interview. Elizabeth thought it was simpler to use licences rather
than leases; and the agreements were labelled accordingly. They provided that Lilly and Russ were to
pay £300 per week for four years. The agreements also provided that Elizabeth could stay over
whenever she wanted. Lilly and Russ moved into the main house the week before term started, and
shared one of the bedrooms. Elizabeth held onto a key. A few times Elizabeth let herself into the main
house after neighbours contacted her to say that the burglar alarm had been ringing for some hours.
Elizabeth was so upset by the state of the kitchen that she started to clean it once a month. Lilly and
Russ were always out at the time and did not notice that it had been cleaned. In 2018 Elizabeth’s son,
Freddie, was released from prison. He decided he wanted to save up enough money to allow him to
emigrate to America in a few years time. Elizabeth therefore agreed to grant him a lease of the
summerhouse for three years or until such time as he emigrated. Freddie moved in and started to pay
the agreed rent. Elizabeth has never got round to granting Freddie a formal lease. Elizabeth now
seeks your advice about the legal status of the arrangements that: (a) Lilly and Russ have to occupy
the main house; and (b) Freddie has to live in the summerhouse. (2019 Zone A level 5)
Q) Dirk and Clea are a married couple. They have recently arrived in London looking for a flat to
rent. They noticed an advertisement for a flat which read: ‘Huge one bedroom flat at attractive rent.
Beautiful decoration and great kitchen. Would suit couple’. The landlord is Ed. The couple were
given an agreement to sign by Ed. The agreement included the following terms: (a) The occupiers
shall pay a licence fee for occupation of the property. The licence fee shall be £1,000 per month. (b)
The landlord shall be able to occupy the property himself at any time, or to introduce any third person
to the property on payment of an equal share of the rent. (c) This agreement creates a mere licence
and not a lease. The landlord only agrees to make the premises available on that basis. The property
DENNING LAW SCHOOL – ABDULQADIR NAEEM
PROPERTY LAW – PAST PAPER QUESTIONS

comprises one bedroom with a double bed which is suitable for two people to occupy. There is a
kitchen; a small bathroom; and a separate living room with a sofa capable of accommodating one
person to sleep. Ed has left a suitcase containing some of his clothes in a cupboard in the hallway.
Dirk met the previous occupants, Joe and Kim, in a coffee shop to discuss the property. Joe told Dirk
that Ed had once arrived at the property at 8.00pm and demanded to be allowed to sleep on the sofa in
the living room. Joe had refused to allow Ed to do so. Ed had left immediately. Advise Dirk and Clea
as to the nature of their rights if they were to sign this agreement. (2018 Zone B)
Q) Tina and Yves saw an advertisement for a flat in London on the internet. It read: ‘Cheap flat for
rent. Would suit couple or two individuals sharing. References required.’ The landlord was Susan.
Tina and Yves met with Susan to view the flat. The flat was comprised of the following rooms: one
bedroom with a double bed; one bathroom with a bath and shower; one kitchen; one utility room with
enough room for a washing machine; and one living room. Tina asked Susan: ‘How could two people
possibly share this flat if they weren’t a couple?’ Susan answered: ‘The sofa folds out into a bed, or
we could probably do something with the utility room like putting a mattress in there.’ Susan gave
them a document to look at. It was titled ‘Licence Agreement’ and contained the following clauses:
(1) The landlord has the right to introduce any third person she chooses to occupy the property with
the occupants. (2) The occupants will be separately responsible for half of the licence fee of £800 per
calendar month, but the landlord reserves the right to recover the balance from the other occupant. (3)
The occupants shall be required to leave the property every day between 10.30am and 12.00pm.
Susan has also offered to provide a cleaner for the property if Yves and Tina paid an extra £80 per
month. Nothing has been signed yet. Advise Yves and Tina as to their rights if they were to sign the
agreement and advise them generally. (2018 Zone A)
Q) Peter and Lois are a couple. They have lived together for twelve years and Lois is six months
pregnant with their first child. They were looking for a flat in Birmingham, England. They found an
advert in the local newspaper which read: ‘Fashionable flat. Would suit young professionals who like
to party.’ The owner, Stewart, showed the couple round the flat. It was a large minimalist flat over
two floors with two bedrooms, a bathroom, a downstairs lavatory and an open plan living room and
kitchen. Peter and Lois said they were interested. Stewart provided the couple with a ‘licence
agreement’ with the following terms: (1) This is a licence, not a lease. The owner does not agree to
rent the property out on any other basis. In the event that the occupants seek a declaration that this is a
lease, this agreement shall automatically be null and void. (2) The occupants will pay £350 each per
week as an occupation charge. They shall be separately responsible for that occupation charge and not
responsible for each other’s payment obligations. (3) The owner will provide cleaning services each
week for which the occupants will pay £150 per month. (4) The owner reserves the right to occupy
the property with the tenants. Peter and Lois signed the agreement. They are now seeking your advice
as to the nature of their rights. Stewart did not provide cleaning services because Lois told him “we
can manage perfectly well, thank you”. Therefore, the couple did not pay the £150 per month. Last
Saturday night, Stewart arrived at the flat unannounced and slept in the second bedroom. Peter and
Lois want that room for their baby when it is born. Advise Peter and Lois. (2018 Resit Zone A/B)
Q) Karen and John are an unmarried couple who are looking for their first home together. They have
found a flat advertised on the internet. Spyros is the landlord. The advertisement for the flat read: ‘Flat
available. Would suit young couple. Cheap rent.’ Karen and John are eager to go into occupation of
the flat as soon as possible. They have been given a document which they are required to sign by
Spyros which contains the following terms: ‘1. This agreement shall not constitute a lease. The rights
of the occupants are as licensees only. 2. The occupants shall be required to vacate the premises
every Thursday morning between the hours of 10.00am and 11.00am so that the property can be
cleaned. 3. The landlord reserves the right to go into occupation of the property at any time.’ The
premises consist of one bedroom, one bathroom and one large room with a combined kitchen and
living room. The bedroom contains one double bed (i.e. large enough for two people to occupy at
DENNING LAW SCHOOL – ABDULQADIR NAEEM
PROPERTY LAW – PAST PAPER QUESTIONS

once). The sofa in the living room can be opened out into a bed for two people. When Karen asked
Spyros about clause 3, he said: ‘Don’t worry about that. I don’t intend to come and spend the night
with you.’ Advise Karen and John as to the nature of their rights if they entered into this agreement.
(2017 Zone A/B)
Q) In May 2015, Alfie moved to London to start work as a teacher at Abbey Grove, a boarding
school, of which his uncle, Fraser, is the owner. Fraser agreed to allow Alfie to live in one of two
empty houses in Abbey Grove’s grounds for ‘four years or as long as you are teaching at Abbey
Grove’. Fraser hoped that if Alfie lived on the school premises it would deter local children from
committing acts of vandalism as well as ensure that Alfie was never late for work in the morning. A
month later, Fraser recruited three more new teachers, Rosie, Martin, and Isobel. They also needed
somewhere to live. Fraser offered them the other empty house in the grounds of Abbey Grove. All
three signed the same deed with Fraser. It was headed: ‘Licence Agreement’, and provided that each
of them would pay Fraser £150 per week as an ‘occupation fee’. The agreement was for two years
from the date the three moved into the house. It also contained a clause by which the occupiers were
to let Fraser’s son, Leslie, stay overnight whenever he came to visit his father. As the house only has
three bedrooms Rosie asked Fraser how this could possibly work. Fraser mentioned that there was a
sofa bed in the living room and added that, as Leslie was working as a surfing instructor in Western
Australia, he was not expected to visit any time soon. The licence agreement also provided for Fraser
to retain a key to the house. Advise Fraser, who wants to know if Alfie, Rosie, Martin and Isobel are
licensees or tenants of their respective houses. (2016 Resit Zone A/B)
Q) Last year Abe and Bee, a young couple, moved into a large, one bedroom flat above a shop in
Bow. The registered freehold of the property was owned by Cleaneze plc, a cleaning company that
used the shop as a launderette. In 2010 Cleaneze plc had entered into a forty year licence of the flat
with Dot, Bee’s mother who was the manager of the launderette. Before moving in to the flat Abe
and Bee each signed separate copies of an identical document, although Abe signed his copy two days
after Bee because he was unexpectedly delayed on his return from holiday. Each document included
the following terms: a) This agreement is a licence and will last for five years or until Dot needs the
flat back for her own occupation. b) Abe and Bee shall pay an occupation charge of £200 per week.
c) Cleaneze plc will provide cleaning services every Sunday morning between 9.00am and 11.00am.
d) Dot will retain keys to the flat. e) Since Abe and Bee have lived in the flat the cleaning services
have been provided only once, even though Abe emailed Cleaneze plc with a reminder. Abe and Bee
seek your advice about the status of their agreement. Advise them. (2015 Zone A)
Q) Last summer, after successfully passing his first-year exams at university, Harold’s mother Maude
bought a house to rent to him and his three friends Abdul, Owen and George. They each signed
identical documents, based on a standard ‘Lease Agreement’ bought from the local stationers, but
with the word ‘Lease’ crossed out and replaced with the term ‘Licence’. The duration of each
agreement was recorded as “two years or one month after graduation” and the rent was set at half the
market rate. A term was also included stating that Harold’s father, Chris, would be entitled to visit the
property every week by prior arrangement to clean the house and do any repairs. In fact, Chris misses
his son so much that he often visits more frequently and occasionally sleeps over when he misses the
last train home. (a) Maude has now been declared bankrupt and her trustee in bankruptcy asks you to
advise on the status of the four agreements. (b) How, if at all, would your advice differ in each of the
following alternative circumstances? (i) No rent was payable under the agreements; (ii) The house
was owned, and the lease granted by Maude’s company which is now insolvent; and (iii) Owen signed
his agreement a week after the others. (2015 Resit Zone A/B)