If you have an area of land that you have no use for at present but are keeping hold of it on the basis that one day you might find a use for it or it might be valuable as development land, then be careful what you do with it in the meantime.
The High Court has recently allowed a claim for adverse possession by someone who was originally given a succession of annual licences over agricultural land, expressly retained by the owner because of development potential. In the case of Pye (Oxford) Limited -v- Graham, the owner, Pye, had granted grazing licences over 57 acres to Mr Graham.
After 1984 no further licences were granted, even though the occupier, Mr Graham, requested their renewal. Despite the absence of a licence, Mr Graham continued to graze the land. Eventually, having completed the 12 year's occupation necessary to claim a title on the basis of adverse possession, Mr Graham's successors registered a caution on Pye's title claiming they now owned the land.
It was held that the fact the Mr Graham had been prepared to take a licence in 1985 did not prevent him from being in adverse possession and time began to run for an adverse possession claim as from the end of August 1984, the date on which the last licence expired.
It is usual in a claim for adverse possession that any occupation of the land under a licence will mean the time occupied under such licence will not count when assessing if the 12 year period has been reached. This case shows that even if you have asked for, and have been prepared to take a licence, this will not affect your claim for title based on adverse possession. The case also highlights the danger to landowners of failing to take action either to renew or to recover possession on the expiry of an existing licence or tenancy.
For further information please contact Caroline Day, of the Property Litigation Team on 020 7367 2329 or by email cjd@cms-cmck.com.
