Reference no: EM133398255
Olivia is the registered owner of number 1 Red Lane, Reading. The house is a freehold property with 2 bedrooms. Due to the cost of living crisis, Olivia decides to earn some extra money by moving back in with her partner who lives in Leeds, and renting out her house in Reading. Olivia moved out during the Christmas holiday in December 2021. On 1st January 2022 she advertised her house for rent on Rightmove. Bailey and Carrie, both of whom are students at a local university, got in touch with Oliva on the same day seeking to rent the rooms. Olivia orally agrees to rent the rooms of her house to Bailey and Carrie for 2 years, starting from 1st January 2022. Bailey and Carrie both agree to pay £600 each per month as rent (inclusive of bills). They share a kitchen, lounge and bathroom. Bailey and Carrie sign an agreement drafted by Olivia, that has the heading "A Licence for the Ground Floor Rooms of 1 Red Lane" on 1st January 2022. Olivia also tells Bailey and Carrie that she will be sending a cleaner to clean both their rooms on a weekly basis in order to ensure that basic standards of cleanliness are met. Olivia also retains a set of keys to their bedrooms "to be used during emergencies". She also tells Bailey and Carrie that they should be out of their rooms every Wednesday and Friday morning, as Olivia would still like to have the option to use their rooms as her personal office and exercise room respectively, on the days when she commutes into Reading. Olivia also refuses to let them keep any pets.
In September 2022, Carrie decides to take a break from her university studies due to her mental health declining. She decides to move back home with her parents in Edinburgh. Before she moved out, Carrie gave oral permission to Elsa to move into her room from 10th September 2022 to December 2023. Elsa agrees to pay Carrie £600 per month. Carrie continues to pay rent to Oliva, but does not inform her of the new arrangement with Elsa.
On 1st December 2022, Olivia decides to sell 1 Red Lane Reading, and move with her partner to Japan for a fresh start. Olivia is shocked to find Elsa living in the house, as Carrie had not informed her that she had moved out and given her room to Elsa. Bailey is worried that she might be asked to move out by the new owner of 1 Red Lane Reading.
1. What advice should I give to Bailey about whether she has a binding lease that would be binding to a purchaser of 1 Red Lane?
2. What advice should I give to Olivia about whether she can ask Elsa to move out immediately?