West London Solicitors

What is the difference between a license and a lease?

Leases and licenses are not the easiest things to distinguish.  To make matters even more confusing, an agreement which is called a license can actually be a lease and vice versa.  The name given to the agreement is not always relevant.

The starting point for making a distinction is to examine the nature of the occupation that is allowed under the agreement and what actually in fact happens.  Leases allow the tenant to posses the property, giving him the right to exclude anyone else, including the landlord, although valid leases can include provisions which allow the landlord to inspect the property, subject to sufficient notice.  Licenses, on the other hand, do not allow possession only occupation meaning your power to restrict the landlord from entering the property will be limited.

What are other characteristics of a lease?

• Forfeiture clauses
• Covenants entitling the tenant to quiet enjoyment of the property
• Clauses which restricting the landlord’s power to enter the property
• A lease duration for a fixed or periodic term

What are other characteristics of a license?

• A short agreement for six months of less
• Not for a fixed or periodic term
• The property includes furniture, fixtures and fittings
• Clauses in the agreement which restrict the power of the licensee to posses the property and prevent the landlord’s ability to enter the property.

What is security of tenure?

Security of tenure allows the tenants to renew a lease if certain requirements and procedures are followed at the end of the current lease term.  Security of tenure is governed by the Landlord and Tenant Act 1954.  Whether the tenant in fact has security of tenure depends on the provisions of this Act and what is said in the agreement itself.

Can a landlord oppose a lease renewal ?

Yes they can, although the only way he can do so is he if can provide evidence to show his intention to develop the land or the property to such as extent that the tenant cannot be expected to occupy the property.  If the tenant has broken the tenancy agreement on numerous occasions, then this will provide sufficient grounds for the landlord to oppose a renewal.

What does the landlord have to show to prove his intent to develop the property?

The landlord has to show that the development is such that the tenant cannot be reasonably expected to occupy the property whilst the works are being carried out.  If, for example, that involves demolishing the property, naturally this will be sufficient enough to say the tenant will not be able to occupy the property!  Evidence of planning permission and financial backing for the development will of be also be expected.

Do my obligations as a tenant disappear if I transfer (assign) my lease to a third party?

If the transfer (assignment) is valid, your duties and rights as an obligation will end, although you will be expected to sign a Authorised Guarantee Agreement (AGA).