Question 1

Bill purchased a livery yard and horse stables in July 2000 called Wild Woods, comprising a small cottage in which he lives, stables for 20 horses and several large barns. Bill purchased Wild Woods with the help of a mortgage from Sat West Bank plc. In 2010 Bills partner, Thea, moved in; she did not contribute towards the purchase price of the cottage but pays half of the mortgage and bills etc.

In 2011, Bill and Thea converted one of the barns to residential accommodation to rent out for additional income. In June 2018 the barn was rented to Lizzie for 4 years at the market rent of 2,000 per month. Bills solicitor prepared the paperwork, which was signed and witnessed.

Bills neighbour, Adam, owns a large farm and shortly after Bill purchased Wild Woods they entered into an agreement. Bill agreed that he would not build any additional structures or outbuildings at Wild Woods. In return, Adam agreed that he would allow Bill to use the path round the edge of his farm for horses and riders. These terms are included in an agreement prepared by Adams solicitor, which was signed and witnessed.

Bill recently agreed to let his friend, Sid, use the second barn to store his collection of vintage motorcycles for a year, paying market rent of 100 per month. He moved his motorcycles in last week.

Advise Bill, Sat West Bank plc, Thea, Lizzie, Adam and Sid of their estates or interests in the house, how they should be created and whether they need to be protected by registration.

Question 2

In February 2018 Rob and Alex purchased the freehold of a block of flats, called Bayview, overlooking the beach in Bournemouth, to rent out on Airbnb. However, as their business was just starting out they decided to boost their income by renting out some of the flats on a more permanent basis and the following arrangements have been made.

Andy lives in the attic flat. He lives alone and has lived there for just over 12 months. He is employed by Rob and Alex as a maintenance man and gardener at Bayview and he receives a modest salary from Rob and Alex, in addition to being able to live in the attic flat.

Jennifer lives in flat 2 and pays the full market rent of 1,500 per month for a term of 5 years. She has been living in the flat since 1 December 2018. Rob and Alexs solicitor prepared the paperwork for them all to sign, which they executed in front of a witness.

Adam and Belle rent flat 3. They agreed to pay market rent of 2,000 per month for 4 years. In their written document, entitled a Licence Agreement, dated 1 January 2019, with Rob and Alex, the terms state that they are not allowed pets in the flat and that Rob and Alex can allow other individuals to live in flat 3 with Adam and Belle.

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Rob and Alex retain a set of keys for each property for emergencies only.

Advise all the parties as to their legal position in relation to any estates or interests they hold, how they should have been protected and whether they will be binding on third parties.