We are considering the acquisition of the freehold of 8 King’s Square, Tapton on
behalf of an investor client. This is a large, 5-bedroom Georgian house with grounds
of 3 acres, in need of renovation. It would be suitable for conversion into 4 self-
contained flats, which we could sell with long residential leases of 999 years. There
could also be the possibility of obtaining planning consent to:
• Convert outbuildings in the grounds into two additional homes, again to sell
with long residential leases of 999 years.
• Build an extension to the house, to create further units to sell.
The land to the side of the large house is open and might be considered to have
potential for large scale housing development. However, this site is just within the
inner edge of the green belt in the local plan. Its development potential might be
secured through a speculative planning application, but we suspect that this would
be refused. We are aware that the Council is about to embark on preparation of a
new local plan, and we think that this might be the best way to pursue the site’s
development potential.
There is also an issue with the current occupiers, Georgia and Tony Marks. The
freeholder, Anne Fredericks, tells me that Georgia and Tony will move out if our
client decides to proceed, but I am concerned that they could refuse to do so.
Apparently, when they were looking for somewhere to live, they saw Anne’s advert
for the fully furnished house with grounds and outbuildings, at a rent of £5,000 per
calendar month. When Georgia and Tony viewed the property and met Anne, they
told her that they would use the extra bedrooms as home offices as they both work
PROPERTY LAW FOR DEVELOPERS
MODULE NUMBER: PLAN5017
COURSEWORK 2
2
from home, and as guest bedrooms for when their family visit. When their family are
not visiting, Georgia and Tony would still need to use the extra space and
outbuildings for storage and to use as a garage.
Anne agreed that Georgia and Tony could fit extra sockets and telephone points
where needed, for their computers and a scanner, and their internet connection. On
this basis, Georgia and Tony decided to take the property, including the grounds and
the outbuildings.
Georgia and Tony both signed separate agreements with Anne on the 31 August
2021. The agreements were identical in all material respects. Each was headed
‘Licence Agreement’ and contained the following clauses:
a) This agreement shall constitute a licence, not a tenancy.
b) This agreement shall commence on 1 September 2021 and end on 31 August
2023.
c) The licensee shall pay a fee of £2,500 in advance on the first day of each
calendar month.
d) The licensee shall vacate the house between 12pm and 1pm each weekday.
e) The licensor reserves the right to use the premises for her own occupation
from time to time.
f) The licensor reserves the right to allow other people to share the premises
with the licensee.
g) The licensor reserves the right to enter the premises at all times. The licensor
retains a set of keys for that purpose.
Georgia and Tony moved in last September. They set up a standing order to pay
£5000 per month to Anne, from their joint bank account.
Georgia and Tony share the house and one bedroom together. They have set up two
of the bedrooms as their home offices, from which they work each day and they have
put extra wardrobes into the remaining two guest bedrooms for their large collection
of clothes. They also use the outbuildings for storage and as a garage.
Anne says that the clause requiring Georgia and Tony to vacate the house between
12pm and 1pm each weekday is just for legal reasons, and she mentioned that she
has never actually required them to vacate the house during these hours. Anne also
tells me that she has never actually dropped in using her keys, apart from on one
occasion in January 2022, when Georgia reported that a leak from the boiler was
affecting their heating and hot water supply.
As I mentioned, Anne says that Georgia and Tony will move out, so that she can sell
the property for development.
3 Can you investigate the law on all this please (including statute and cases if relevant)
and get back to me with a report giving advice on whether Georgia and Tony have a
lease or a licence and whether they can be required to move out if our client
acquires the premises? In addition to
investigating the position regarding Georgia and Tony, can you also let me know
what we would have to do to secure planning permission for the conversion of the
outbuildings and, more significantly, try and get the surrounding land promoted for
large scale housing development? Are there any court cases setting out the law on
green belt boundary reviews?
