A lease (tenancy) is characterized by exclusive possession. The likelihood of it being categorized as a lease increases if someone has sole possession of the property.
“An occupier of residential accommodation at a rent for a term is either a lodger or a tenant. The occupier is a lodger if the landlord provides attendance or services which require the landlord or his servants to exercise unrestricted access to and use of the premises. A lodger is entitled to live in the premises but cannot call the place his own.” (Lord Templeman)
Mr. Street allowed Mrs. Mountford to occupy rooms 5 and 6 at 5 St. Clements Gardens, Boscombe, under an agreement that started on March 7, 1983.
Mrs. Mountford agreed to pay £37.00 per week, and the agreement could be terminated with 14 days' written notice.
The central question in this appeal was whether the agreement constituted a tenancy or a license.
Appeal allowed.
This case provided clarity on the key factors distinguishing leases from licenses, with a strong focus on exclusive possession and established a framework for assessing the nature of occupancy rights, which remains a cornerstone in property law.
Defendant granted Plaintiff a right to exclusively occupy a house at a weekly rent, terminable on 14 days notice, and which purported to be a licence.
HL held that where, as here, residential accommodation had been granted for a term at a rent with exclusive possession, the grantor providing neither attendance nor services, the legal consequence was the creation of a tenancy. This is regardless of incorrect labelling.
Unrestricted access of the landlord or his servants to the property means that the occupier will be a lodger, and not a tenant, since there is no exclusive possession.
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