Property Law for Developers
You are a graduate surveyor working in the acquisitions department at Tomlinson’s, a regional firm of surveyors.
You receive the following memo from your supervisor, Asha Gill.
From:
To:
Re: Acquisition of 10 Queen’s Square, Tapton Date:
We are considering the acquisition of the freehold of 10 Queen’s Square, Tapton on behalf of a developer client. This is a large, 6-bedroom Victorian house with extensive gardens and parking. It would be suitable for conversion into student accommodation, which could be let to students from the local agricultural college. There could also be the possibility of obtaining planning consent to:
- Convert outbuildings in the grounds into additional, larger, units, to let to postgraduate students.
- Build an extension to the house, to create a gym, common room, and laundry.
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, siblings Grace and Harry Baxter. The freeholder, Susan Lopez, tells me that Grace and Harry 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 Susan’s advert for the house with gardens and parking, at a rent of £6,000 per calendar month. When Grace and Harry viewed the property and met Susan, they told her that they would have a bedroom each, use the extra bedrooms as home offices as they both work from home, as guest bedrooms for when their family visit, and as a home gym as they are both fitness enthusiasts.
Susan agreed that Grace and Harry could fit extra sockets and telephone points where needed, for their computers and a scanner, and their internet connection. She also agreed that they could fix some of their gym equipment to the walls and floor. On this basis, Grace and Harry decided to take the property, including the gardens and parking.
Grace and Harry both signed separate agreements with Susan on the 30th November 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 December 2021 and end on 30 November 2023.
- c) The licensee shall pay a fee of £3,000 in advance on the first day of each calendar month.
- d) The licensee shall vacate the house between 12pm and 1pm daily.
- 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.
Grace and Harry moved in last December. They set up a standing order to pay £6000 per month to Susan, from their joint bank account.
Grace and Harry share the house and have a bedroom each. 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 one of the remaining bedrooms for their large collection of clothes. They have also fitted gym equipment into the remaining bedroom.
Susan says that the clause requiring Grace and Harry to vacate the house between 12pm and 1pm each day is just for legal reasons, and she mentioned that she has never actually required them to vacate the house during these hours. Susan also tells me that she has never actually dropped in using her keys, apart from on one occasion in January 2022, when Grace reported that a leak from the roof was causing damage.
As I mentioned, Susan wants to sell, but she is worried that Grace and Harry will not move out, to enable her to sell the property for development.
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 Grace and Harry have a lease or a licence and whether they can be required to move out if our client acquires the premises? Please also let me have any suggestions you may have to resolve the situation if Grace and Harry do refuse to move out. In addition to investigating the position regarding Grace and Harry, can you also let me know what we would have to do to secure planning permission for the conversion 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?
Assignment task
Work Report 1,500 words in length.
Assessment criteria
Students will be assessed on a number of criteria which are set out below.
A: KNOWLEDGE AND UNDERSTANDING
Demonstrate knowledge and understanding of legal rules and principles by selecting and explaining relevant information and illustrating with examples and citation.
B: ANALYSIS, APPLICATION AND EVALUATION
Analyse legal material, issues and situations, and evaluate and apply the appropriate legal rules and principles.
C: COMMUNICATION AND PRESENTATION
Present a logical and coherent argument and communicate relevant material in a clear and effective manner using a professional register. Presenting coursework for assessment Your assignment must be presented in the following format:
❑ It must be word-processed in 12-point Arial font and double-spaced
❑ It must be black text on a white or ivory background
❑ All pages must be numbered
❑ Margins must be as follows: Top: 1 inch, Bottom: 1 inch (2.5 cm), Left: 1.25 inches, Right: 1.25 inches (3.2 cm)
❑ It should not contain your name(s)
