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Thomas, Lawyer
Category: UK Law
Satisfied Customers: 7430
Experience:  BA (Hons), PgDip, Practising Solicitor
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what is the diffence between a licence and lease

Resolved Question:

what is the diffence between a licence and lease
Submitted: 5 years ago.
Category: UK Law
Expert:  Thomas replied 5 years ago.



Do you mind if I ask why you are asking? Does it relate to a situation you have or perhaps an assignment question?


Customer: replied 5 years ago.
We have had a renewable licence on some land for business perposes for some time and want to know what safeguards we have for future use should the licence not be renewed
Expert:  Thomas replied 5 years ago.



Thanks for your question.


There are no statutory safeguards for licences, they can be revoked at any time subject to what the licence actually contains. Check to see what they agreement actually says about termination to see your rights in this regard.


If operating a business from business premises for any significant time it is hugely more preferable for you to have a lease which governs your occupation of the property, rights to renewal and termination early than the fixed term.


The Courts have to power to look beyond what an agreement states it is. If it states it is a licence but actually has all the characteristics of a lease then they can declare it as a lease (Street v Mountford is the leading case on this). The most important of these is exclusive possession (ie. a right to exclude all others, including the landlord).


If you wish to secure your right to long term occupancy you should attempt to negotiate terms for a lease and then have this drawn up by solicitors.


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Kind regards,


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