Licence to Occupy for Landscaper Handyman?

Sounds like a sweet deal, but you should prepare for it to go wrong.
HOw about you get a quote from him to do the works, divide that over say 12 months, set the rent for the house at a fair level, get him in on an AST and pay him for the works over the first year (effectively from his rent of course), the money goes round in a big circle, yes there are minor tax liabilities, but at the end you have a tidy property, he has an AST and its all above board.
Use the excuse that my ‘accountant’ just wont let me do it any other way. Always works for me in negotiations!

Godfrey

The simple answer is that a licence to occupy will not be appropriate. The question about licences often arises, but the genuine opportunities to use them are limited.

Your statement about access/staying over comes across like you are looking for reasons to create a licence, which would arguably be a sham. On the basis that you live elsewhere, you will not be the primary occupier of this house and therefore cannot grant a licence (as you would for a lodger).

You will need to comply with the usual legal obligations, such as gas and electric.

I suggest that you do not try and document anything yourself as this is a recipe for disaster. Go to a solicitor, or good qualified local agent, and get a proper document drawn up. If you came to me (a qualified agent) I’d need a bit more information, but would probably suggest an AST with a rent payable so as to give you some certainty.

Sounds like a sweet deal for the tenant but what happens when he finishes all of the gardening & maintenance work. Minimum rents for AST’s are very low (£250/£1,000.00pa depending on area) so create an AST with a rental level above these limits and you should be safe.

As it becomes his main res, especially as he’s covering the utilities plus CT therefore an AST is being created, Remember this mantra… Ahem, ‘Never A Good Deed Goes Unpunished’!. Make sure you know the way to your local cleaning company because you may be have to spend quite some time there!
Joking aside, if this goes wrong it will go spectacularly wrong an any judge will throw our a Licence claim.
Unfortunately this is where current RRB and layers of legislation prohibit scenarios like this.

There is a good chance that the work he does for you and the bills he pays, (that you would otherwise have to pay) would be considered “Monies Worth” by a court and if its sufficient, mean that a court would consider he has an AST not a licence. You would probably then be unable to evict him.

Once he is in and paying rent, he will not want to leave, nor probably be able to afford to.

Godfrey you are in danger of lurching from one disaster to another, (I remember your last post). This business is now too dangerous for well meaning amateurs. I would urge you to consider whether to carry on letting.

Reply to the comment left by DPT at 14/02/2025 – 05:16Thank you for your reply. I’m an old fashioned hand shake and the deal is sealed sort of guy. I’d rather help someone than do someone a disservice. I’ve always tried to do my best but I think you may well be right. I was planning on retirement in 2027/28 anyway but it’s probably best I go now before I end up making some unintentional cockup and screw myself. I have to let this guy finish as I made a promise. I did do a Licence to rent for 6 months so when he’s finished I’ll be moving in myself in June and living there as my main residence for a couple of years to hopefully avoid CGT when I sell. Thanks again for your advice. Blessings, Godfrey

Thank you for your reply. I’m an old fashioned hand shake and the deal is sealed sort of guy. I’d rather help someone than do someone a disservice. I’ve always tried to do my best but I think you may well be right. I was planning on retirement in 2027/28 anyway but it’s probably best I go now before I end up making some unintentional cockup and screw myself. I have to let this guy finish as I made a promise. I did do a Licence to rent for 6 months so whdn he’s finished I’ll be moving in in June and living there as my main residence for a couple of years to hopefully avoid CGT when I sell. Thanks again for your advice. Blessings, Godfrey

Reply to the comment left by Godfrey Jones at 14/02/2025 – 15:16
I hope you don’t mind me asking Godfrey, but have you done the safety checks (gas, electric, etc.)? Irrespective of the tenancy legislation you must make sure that the property is safe.

Absolutely. And EPC is upto date along with Insurance, working smoke and C02 Alarms.
I’ve basically done things as per a proper tenancy. I’ve just not charged him and agreed I and members of my family and friends (who have also offered to do jobs) can enter and stay at any time as long as he covers utilities and Council Tax.

So many differing opinions. I’m still not sure what to do. I’ve already done a Licence to Occupy so as work is progressing it looks like it will all be finished in a month or two so I’m tempted to just let it run.