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person has the right to sell their home, they will need to know which rights they possess – or don’t possess – in the property.
A Licence to Occupy (‘licence’) is a personal agreement between a property owner (licensor – the landlord) and an occupier (licensee).
Under a licence the Licensor provides the Licensee with the non-exclusive possession of a property for a period of time, typically 6 or 12 months.
This may be a solution to the issue in a corporate insolvency where there is a need to occupy premises to run a business, or just to complete work in progress, and the officeholder does not want to take out a lease over a long period of time.
It can be a useful solution for a landlord, who may not have found a long-term purchaser of the lease and wants the premises to be occupied and generating income in the meantime.
[See ‘Officeholder’.]
A lien is a claim or legal right against assets that are typically used as collateral to satisfy a debt. A creditor or a legal judgment could establish a lien.
A lien serves to guarantee an underlying obligation, such as the repayment of a loan.
An example is, a garage works on the maintenance or repair of a car and issues an invoice. If the invoice is not paid by the vehicle’s owner the garage can claim a lien over the car until the invoice has been satisfied. They will keep the car until the full amount of the invoice is paid.
A ‘Particular Lien’ only applies to secure the debt arising from a particular transaction, rather than a series of transactions.
A ‘General Lien’ secures property for all of the sums owed by the debtor.
