Street v Mountford [1986] Conv 39

KEY POINTS

• 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)

FACTS

• 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.

JUDGEMENT

• Appeal allowed.

COMMENTARY

• 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.

ORIGINAL ANALYSIS

• 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. 

Lord Templeman

• 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.