Most licenses give the landlord and tenant the right to terminate the contract if necessary, with typical notice being a tenancy period (rental period) or 28 days. Although Tareem attempted to ensure that the agreement was construed as a licence, the court ruled in favour of London College and found that he had lived in the building under a lease and therefore had, in this case, the rent guarantee. This agreement contains minimal and customary provisions in a simple form to prevent it from being construed as a tenancy agreement under the Landlords and Tenants Act 1954. What is excluded is just as crucial, what has been recorded. More important than what is a license is what it is not. A license is not a lease. It is essential that a license grant the licensee permission to use the premises in question, but that it does not confer other rights such as. B exclusivity, rent control or right of residence. As a general rule, licenses are granted when you share your premises with either the owner or with other businesses. Indeed, a tenancy agreement offers much more legal certainty to tenants.
Under a tenancy agreement, commercial tenants have “rental security” under the Landlords and Tenants Act 1954, unless they have followed a contracting out procedure. Rent security would mean that their lease does not automatically end at the end of its term, and the tenant has the legal right to stay there. A license is a personal right or permission for a party to use or occupy a property. Specifically, an occupancy license is essentially permission for one party to do something on the land of another party. By definition, it is not a lease. The owner of the property is generally referred to as a “licensee” and the party has given permission to use the property known as a “licensee.” The distinction is important for a number of reasons. In particular, a license is only a personal and contractual authorization for the licensee to do something – to provide the country in this context. A licence does not confer rights on the bearer, it cannot be transferred, and it does not survive any change in ownership of higher property or interest rights. It is essential that a licence does not guarantee seniority and, therefore, a licensee`s position is precarious. Your contractual and working relationships with your landlord are particularly important in licensed offices. A misunderstanding by the landowner or occupier about the correct legal nature of any occupation of commercial space can have devastating consequences. However, a potential taker should not be under any illusions that the use of the proposed land still depends on the continued authorization of the licensee, which could be revoked in the short term.