St Andrews Forest Lodges Ltd v Grieve and another

Landlord and tenant – Agreement to occupy residential property – Dictinction between leases and licences. Sheriff Court: In an action concerning an agreement under which the defenders were permitted to continue to occupy a residential property following its purchase by the pursuer, in which the pursuer sought declarator that the defenders had no right or title to occupy the subjects and an order ordaining them to remove therefrom, a proposed sale by the pursuer to the defenders having fallen through and they having refused to remove from the subjects, the court held that all the essentials of a lease being present, including exclusive possession, as a matter of law it was a lease and not a licence which the parties by their agreement created, whatever their intentions as to its legal status, and the tenancy that had been created was an assured tenancy and not, as the pursuer contended, a holiday let.

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