Lease or Licence?

Licence: A License is not a Lease, it is a mere right to occupy the property and does not create any legal interest in the land. This form occupies a very low level of protection for occupiers as the rights they have are minimal. 

 

Lease: A Lease was defined in the case of Street v Mountford as having three main aspects. Firstly, there must be exclusive possession in that the occupier could exclude the whole world if they wish. Secondly, there must be a term certain, as defined in the case of Lace v Chantler in that the length of occupation can be stipulated. Lastly, there must be a form of rent payable or premium provided as security. 

 

If all three components can be identified, it is likely that the property is being occupied under the terms of a Lease. There are different types of lease, which can again vary the level of protection and rights available to occupiers. These can include, however, are not limited to the following: 

 

Fixed Term Lease: As it says on the tin, the lease expires after the term stipulated within the Lease. 

 

Periodic Lease: Such Lease is limited to the rent payment frequency. The Lease will continue automatically, at the end of each period, for the same length of time until notice is given to determine the same. 

 

Your conveyancing solicitors Preston would look to the Lease itself, and the terms stipulated, for confirmation as to any rights and obligations and be able to advise you accordingly. 

 

If you have any questions in respect of occupying property, or any other conveyancing query, contact MG Legal, your Preston law firm today at enquiries@mglegal.co.uk.