Seller Licence To Remain In Possession Addendum Template for England and Wales

When you're selling your property but need to remain in it after completion, a Seller Licence To Remain In Possession Addendum provides the legal framework to make this arrangement work safely for both parties. This specialized document creates a temporary license that allows you to stay in your former property while protecting the new owner's interests and avoiding the creation of unintended tenancy rights.

When do you need this document?

You'll typically need this addendum when your property sale completes before you can move out. Common situations include delays in your onward purchase completion, rental property not being ready, or needing additional time to organize removal services. Estate agents and solicitors often recommend this arrangement when chain delays threaten to collapse entire property transactions. The addendum is also valuable when you're downsizing and need time to sort through belongings, or when family circumstances require a phased move. Without this formal agreement, remaining in the property after completion could create legal complications or even constitute trespass.

Key legal considerations

The most critical aspect is ensuring the arrangement creates a license rather than a tenancy under the landmark Street v Mountford case principles. Your agreement must clearly state that no exclusive possession is granted and that the buyer retains ultimate control. You'll need to specify exact occupation dates, daily or weekly license fees, and your ongoing responsibilities for utilities, insurance, and property maintenance. The document should address what happens if you overstay, including potential daily penalties and the buyer's right to seek possession. Consider including clauses about property access for the new owner, restrictions on alterations or subletting, and clear termination procedures. Insurance arrangements are particularly important as standard home insurance may not cover post-completion occupation scenarios.

Legal requirements in England and Wales

Under the Law of Property Act 1925, any arrangement affecting land interests must comply with specific formalities, though licenses typically require less formal creation than leases or tenancies. The Housing Act 1988 provisions help distinguish your license from protected tenancy arrangements, which is crucial for both parties' protection. Consumer Rights Act 2015 may apply if you're considered a consumer, potentially affecting the fairness and enforceability of certain terms. Your agreement should reference that it's governed by English and Welsh law and specify which courts have jurisdiction for any disputes. The document typically needs to be signed by both parties and witnessed, though it doesn't require registration at the Land Registry. Ensure your conveyancing solicitor reviews the addendum alongside your sale contract to avoid conflicts between the documents and confirm it meets all legal requirements for your specific circumstances.