Assisted Sales – How to Make Sure they Don’t Unravel

In order to do the renovations on an Assisted Sale, you 100% need to structure it correctly by ensuring the legals are all in place – but without obviously scaring off the Vendor.

You don’t just want to ‘Let the vendor allow you to do the works’ and you don’t really want a lease.

In most assisted sale structures, the cleanest and safest route is a Licence to Occupy with an Assisted Sale Agreement, tightly tied together.

But let’s look at the Three main Options, and why only one of them works the best.

1. Licence to Occupy (MOST COMMON & RECOMMENDED)

This is the industry-standard approach for assisted sales where You are funding or managing refurb works before the sale completes.

What it is

• A personal licence, not an interest in land

• Gives you permission to enter, control works, secure the property

• Does not create tenant rights

• Can be terminated if the sale doesn’t proceed

Why it works best

• Avoids accidental tenancy or lease creation

• No SDLT and Lender issues

• Protects the vendor as they remain owner

• Protects you - clear access, control and cost recovery provisions

What MUST be included

• Explicit statement: “This licence does not create a tenancy or lease”

• Right to carry out specified works only

• No exclusive possession wording

• Access for vendor / agents on notice

• Clear start date, end date, termination triggers

• Insurance responsibility split (very important)

• What happens to your refurb spend if the sale aborts

• What is the agreed Sale Price

• What the final ‘split’ will be for the profit (eg 50/50 70/30)

2. Lease - Rarely appropriate for Assisted Sales

This is Not the best tool, unless you are deliberately structuring something closer to a lease-option or commercial control arrangement.

Problems with a Lease

• Creates a legal interest in land

• Triggers lender consent issues

• Can complicate SDLT and future sale

• May give you security of tenure

• Vendor can’t sell cleanly without dealing with the lease

When a lease might be used

• Long-term control (12–36 months)

• Rent is being paid

• You are operating the property, not just refurbing

• Sale is not imminent

Avoid for classic Assisted Sales

3. Vendor Just Letting You Do the Works - HIGH RISK – PLEASE DO NOT DO THIS !

This is where people say; ‘We’ll just put something in writing to say that you can crack on.’

This is how deals go wrong!

Risks

• No enforceable right to access

• No protection if vendor dies, divorces, or changes mind

• No clarity on who owns improvements

• Insurance invalidation

• Zero recovery if the deal aborts

• Potential allegation of unauthorised works

Even with goodwill this is legally fragile

The Proper Assisted Sale Stack (Best Practice)

You normally want three documents working together:

1 - Assisted Sale Agreement

• Sale price or pricing formula

• Cost recovery mechanism

• Authority to market

• Exit routes if not sold

2 - Licence to Occupy

• Physical access & refurb rights

• Insurance & health & safety

• Termination provisions

3 - Legal Charge / Restriction / Cost Protection

• Optional but strongly recommended

• Protects your refurb spend on title

• Stops vendor selling behind your back

Key Compliance & Risk Notes (very important)

• Never include Exclusive Possession*

• Avoid keys plus control without licence wording

• Insurance must be explicitly agreed (often dual-insured)

• Works must be limited to defined scope

• Include step-in rights if vendor breaches

• Always assume: “What if this goes wrong?”

Whichever way you structure the agreement – please please please use a Solicitor who is knowledgeable of Assisted Sales and knows how to structure the agreement as if you get it wrong – for you or the vendor – it could be extremely costly !

*See Blog on Exclusive Possession

If You Want to Learn More - Book a Call through the link or from our website - www.fahhproperties.co.uk - and lets discuss what you need and how we can help.