Reference no: EM133835569

Question

You are consulted by Brian and his partner Jacob. They have various issues in connection with properties they own and seek your advice. Brian seeks your advice with regard to renting out his property in Wales. He has already been approached by four friends who wish to have a bedroom each and share the remainder of the accommodation including the bathroom, although the master bedroom has an en suite. They are paying £250 each per month by way of rent and have asked for the letting to be for a term of at least one year. Brian wants to treat the proposed tenants fairly but at the same time he wishes to have some control of the property including retaining a key. He also thinks he would like to be able to control who the tenants are and if one leaves he would like to be able to appoint another suitable tenant himself. He has spoken to a friend of his, Muntaz, who is studying law at university and he has advised Brian it might be better to have a document called a 'licence' drawn up rather than a lease. Muntaz also discussed adverse possession but Brian did not fully understand. Jacob is in the process of buying a thatched cottage in the country. The cottage is owned by an elderly couple, Max and Winifred Jones, who bought the property when they married fiftyfour years ago. They are now moving to the coast to enjoy their retirement and to be near to their daughter. They have told Jacob that they believe the title to the property is not registered at the Land Registry, and this is because they have owned it for so long and did not have it registered when they bought it. Jacob is a little confused by the terminology and seeks clarification on this. Jacob also advises you that when the purchase of the property is completed he would like to set up a trust for his children, Charlotte and India, to the effect that they can live in the property for their lifetime. He does not wish it to be sold without the consent of both of them and the consent of their brother Edward. Jacob is going to appoint his sisters, Amelia and Delia, to be the trustees.

1. Explain the term adverse possession and highlight the recent developments in this area.

2. Explain the difference between a lease and a licence and advise Brian whether the terms he has agreed with the four friends are likely to constitute a lease or a licence.