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Buachaill, Barrister
Category: UK Law
Satisfied Customers: 10595
Experience:  Barrister 17 years experience
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We have a licence industrial unit and have had it 11 years.

Customer Question

We have a licence for an industrial unit and have had it for about 11 years. The licensor did not own the head lease. The head lease is owned by a pension trust who have got planning permission to build a large warehouse. The licensor for our unit has given us one month to vacate the unit however he has another site of industrial units where he can accommodate us. Does the licence for our unit at present end on the vacation date or must the licensor transfer the existing licence to the new unit.
Submitted: 1 year ago.
Category: UK Law
Expert:  Buachaill replied 1 year ago.

1. The licence to your present unit ends on the date of vacating the premises. It does not automatically transfer over to new premises. Essentially, you will be able to get a new agreement, with preferably stronger terms on the new premises. I would suggest you upgrade the type of agreement you hold to a lease, as this will give you stronger legal protections than a licence. For example a licence allows the grantor to enter the premises to inspect it when they want. However a lease gives exclusive possession. Additionally, the notice provisions are stronger with a lease. It is likely that you were only granted a lease by the licensor on the current premises because the licensor did not own the head lease and so would have to leave upon short notice. So you should bargain for stronger terms on a new premises.

Customer: replied 1 year ago.
It doesn't say on the licence agreement that it can't be transferred which makes me think it can be transferred to the new unit. We prefer to transfer the licence to the new unit if we can rather than have a lease for the new unit.
Expert:  Buachaill replied 1 year ago.

2. You can seek to have the licence transferred to the new premises. However, just be aware, that in law, there is no automatic entitlement to transfer this licence over to the new premises. Because the premises being demised are different, one would normally prepare a new agreement.