However, you should always be sure to choose the right conditions and understand what you agree with. With regard to the duration of the licence, if the licensee actually occupies exclusively the property or if you grant a fixed period of more than six months, the licensee may claim that he has a “rental contract”. The problem is that such a tenancy agreement would be protected by the Landlords and Tenants Act of 1954. In certain circumstances, the tenant may, under this right, assert a right of renewal. (See Wikipedia`s summary of the right of retraction here.) However, despite the use of bewillik`s authorization, the High Court ultimately found that Ms. Radich had been granted a lease of the premises for the agreed period. We have designed our model contract in clear English and it contains comprehensive guidance to make sure it is easy to complete for you. Beware of granting a “license” that is really a rental agreement. A court could decide that the licensee is really a tenant who has rent security. If there is any doubt as to whether a proposed agreement will be a rental agreement or a licence, the safest approach is to grant a tenancy agreement excluding the tenant`s right to rent security. Sometimes it is not appropriate to grant a lease.
If the company occupies the premises only for a short period of time (for example. B less than 6 months) or if the parties are in the process of negotiating a tenancy agreement, but the tenant must occupy the premises immediately, the parties may benefit from a tenancy agreement according to their will or license.    1 EGLR 128  and, generally, at a rent, although the rent is not necessarily significant/determinative   EWHC 437 (Ch) , there is a mandatory allocation procedure that must be strictly followed when an otherwise qualified operating tenant must be excluded from the safety of the operating rules of The 1954 Act. This procedure was not applied by the parties in this case. His Honour therefore recognized that language has the potential to mislead – certain terms may be accepted, sometimes unconsciously, sometimes with the deliberate intention of concealing the true nature of the parties` agreement and circumventing the legal implications that flow from it. A license places you under certain obligations and gives your owner certain rights that are not known to all. Lease tenants: Section 105 of the Property Law Act 1974 (PLA) provides that the tenant is required to pay the agreed rent and maintain the premises in good condition (except in cases of fire, flood or similar cases that make the premises unsuitable for this purpose). This provision may be excluded or amended by the explicit terms of the lease. Like a lease agreement, a licence may require payment of a “rent” (or “licence fee”) that may apply for a fixed term, although it generally allows the purchaser to use the property for a defined, usually short, period for a specified purpose, whereas a lease is generally valid for fixed and longer periods.
If you have any questions or concerns about the ownership or occupancy of commercial premises and/or the expiry issues raised in this article, please contact David Manda or a member of the Walker Morris` Real Estate Litigation team. When a person or business occupies premises owned or in someone else`s best interest, flexibility is important for a new or growing business, as it can often be impossible to predict sales volumes and activity levels more than a few weeks in advance. Lease tenant: Section 124 of the PLA provides that in the event of a tenant`s violation, the lessor cannot lose the tenancy agreement and cannot repossess the landlord without first informing the tenant of the forfeiture and a reasonable period of time to repair the infringement or pay “appropriate compensation” for the damage. (However, this protection is not available for leases/leases of one year or less.) Licensed: A license cannot be registered and is therefore not interested in the land.