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A licence is an informal agreement between say a landlord and an occupier of the land. The only problem in this kind of agreement is that the occupier is not protected by lease agreement legislation because the occupier has not expressed “an interest in the land”…
In Ashburn Anstalt v Arnold, Fox LJ’s judgment confirms that based on principle, licences do not indicate “tenancy interest or interest in the land” on the part of the licencee; therefore, they cannot bind third parties as a result of this. On the other hand, when a piece of land is given out as a lease, the landlord does not have the power to terminate the occupancy of the land on short notice (Netlawman, 2011). This means that tenant has the right of occupancy until the period of lease elapses. However, in Ashburn Anstalt v Arnold, it is clear that when a tenant is expected not to pay a rent, there is not legal relationship between him/her and the landlord. The landlord holds the licence, which he or she can revoke at anytime. And when this happens, the tenant has no power to challenge this decision in court because there has been no legal agreement between the landlord and him/her. Invariably, the tenant has not expressed interest in the occupancy of the accommodation and hence could not claim any damages due to the revocation of the licence by the landlord. On the other hand, a tenant would show his or her interest in an accommodation by entering into a legal agreement.
For the flat Andrew rent out to Beth, Catherine and Daniel, he created an interest of collective leasees in them, meaning that if he decides to sell his freehold to the flats, Beth, Catherine and Daniel have to buy the flats and become collective landlords. ...
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