In a pickle and need legal expertise?

No I didn't sign the draft, and it wasn't complete either ie names, dates etc, it was just a template.
As Landlord Action is the only recommendation on here, I'll take it up with them. Cheers

The original four unrelated occupants would have formed a HMO (regardless of whether on one shared tenancy, or four separate ones).

I believe that the "licences" are almost certainly "tenancies" (regardless of what you may wish to call them), as per the Street v Mountford caselaw (and subsequent caselaw that re-affirms this).

As the licences would almost certainly be considered by a court to be tenancies, the ability to end the tenancy will be specified in the original tenancy agreement (what you are calling the licence), but are also subject to the standard tenancy ending legislation and processes, e.g. Protection from Eviction Act 1977. This means that the tenancy can only be ended by a court order (unless you meet the criteria in section 3a).

A court may not grant possession unless you can evidence the tenancy and your compliance with a lot of legal requirements, e.g. protecting the deposit in a government approved scheme (among the long list of legal requirements), plus of course following the correct legal procedure in terms of the serving of valid notices etc (which of course you cannot do unless you have complied with the various other requirements first).

There is no quick or easy solution to your problem, and the cost of rectifying your position is likely to be many times more than the £720 figure you have been quoted (the £720 is just for reviewing the documents, not putting everything right (paperwork wise), or assisting with a possession hearing, or an eviction).

You may also find that the tenants may be entitled to compensation from you (e.g. if the HMO needed to be registered), and you could also face prosecution or civil penalties by the local authority.

This is the pickle that private landlords can get into when purporting to issue a "licence", when really the occupancy would legally be considered to be a tenancy.

NOTE: I am not a solicitor, so please consult a solicitor in relation to your problem and to also check and verify any advice you may receive from myself or other people (unless they are legally qualified and are advising you in a professional capacity).

If I had a tenant in arears I wouldn't allow them any leeway and would give them notice asap even if it meant a painful eviction. I went into this business with an attitude to be kind and treat people with respect, and in most cases this is repaid but I have also been stung and as many landlords will attest 'give them an inch and they will take a mile.' I used Legal for Landlords for an eviction recently and their price was less than Landlord Action and their service was exemplary. It is cheaper in the long run to pay professionals to get this sorted as soon as possible.

Depending on what landlord insurance you have you may have access to free legal advice for initial advice through your policy.

Couple of questions.
1. How many bedroom in the property?
2. Did this "nice couple" always share a bedroom? If so check the people requirements for an HMO ie +3 = HMO as if they were a couple assigned 1 bedroom plus communal areas then may be treated as 1 entity even if not married but in a relationship. Ie Bedroom 1 : nice couple (X1& X2) Bedroom 2: Y. Bedroom 3: Z
3. Do the individual bedrooms have locks? If so lock Bedrooms 2&3
4. What are the Ending a Tenancy clauses in the original agreement?
5. As you did not sign nor date the AST left for their information then this is not, I would think, legally binding BUT their original tenancy is.

Reply to the comment left by Sarah Quinlan at 11/02/2022 - 10:49
My hart goes out to you been a landlord for 40 years with quite a large portfolio up until about 5 years ago never evicted any one now seem to always have 1 are 2 on the go finding professional help is not easy last week was in court and my barrister could not answer my questions so be careful

I am surprised at some of the comments. It seems people are pushing thel solicitors approach I wonder how many have a vested interesed.
My advice as a landlord who form experience with solicitors and there limited skills is sort it out wit the tenants. save your £720. rather than waste it on legal fees which will only go up. Note Landlord action quoted £x to review your file thats only their advice and involvement will be more
If you never signed that draft AST then its not of any worth to the tenant surely you follow this and explain that to the tenant. tell them to check that fact with Citizens advice. You say you are prepared or were prepared to let them stay. so negotiate a deal for them to stay and clear the rent arrears. Serve them all the right papers but dont sign the AST. Even if you you forgo a bit of the arrears its a better solution than going to solicitors. Suggestion: once they have paid off x amount you will forgo the debt
This idea of running off to lawyers that so many above suggest is crazy Citizens Advice will give the tenants FREE legal advice ( when they get through) use that advice to manage the situation Infact you are also entitled to seek their advice. There is also NRLA who for members give prompt simple advice and advice on all the forms you now need etc. ( the forms are free )

Reply to the comment left by blair at 12/02/2022 - 18:37
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