Licences and excluded Lettings
As with all questions of what type of tenancy you enjoy, it is a
matter of fact rather than what is written on the agreement or how
the landlord might describe the arrangement.
A licence is permission to occupy accommodation
without giving the occupier any legal interest.
For instance, if you are staying at a hotel on holiday then you
have been granted a licence to occupy but when that permission ends
you have no rights to remain.
Another example of a licence is someone who must live in the
accommodation as part of the job.
An example of a "bare licensee" is someone who is
staying with family or friends. You can be evicted from a "bare
licence" after being given "reasonable notice", which could be as
little as a week.
Some licences are created by agreement and are known as
"contractual licences". For example, let's say,
the tenant where you are living moves out. The landlords do not
wish to grant you a tenancy but they are willing to allow you to
stay for a temporary period if you continue to pay the rent. In
such a case, a "contractual licence" would be created.
If you have a fixed term licence then the landlord cannot force you
to leave before the end of the term.
The payment you make to the landlord is usually referred to as "use
and occupation charges", rather then "rent", as rent is often seen
as an indication of a tenancy.
Resident Landlord
If you have a "resident landlord" then your licence is known as
an excluded letting.
A "resident landlord" is a landlord who either shares the
accommodation directly with you, or lives in another part of the
same building, if it has been converted into self-contained flats
[this does not apply to purpose-built flats].
In both cases the landlord must have been living there, as their
principal home prior to the commencement of your tenancy.
In either case, a resident landlord does not have to give a reason
to ask you to leave.
In the situation where you directly share your accommodation with
your landlord, then you are an "excluded occupier" and the landlord
is only required to give you reasonable notice which is usually
taken as the equivalent of the rental period, say a week. An
"excluded occupier" is not entitled to a Court
Order.
Other excluded occupiers include people who do not pay any rent for
their accommodation or people living in hostel accommodation.
In the situation where your landlord lives in another part of the
same building [which is not a purpose built block], then the
landlord is required to give you a written Notice to Quit giving
you at least 4 weeks notice.
Once the Notice has expired the landlord can apply to the County
Court for a possession order without needing to demonstrate any
reason.