Q&As

Following termination by the licensor of a commercial licence to occupy, the licensee has remained in occupation for 14 months, paying rent to the licensor. The parties have been actively negotiating a new lease. The licensee argues that it has security of tenure. What is the nature of the licensee’s occupation of the property?

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Produced in partnership with Alexander Campbell of Field Court Chambers
Published on LexisPSL on 17/01/2019

The following Property Disputes Q&A produced in partnership with Alexander Campbell of Field Court Chambers provides comprehensive and up to date legal information covering:

  • Following termination by the licensor of a commercial licence to occupy, the licensee has remained in occupation for 14 months, paying rent to the licensor. The parties have been actively negotiating a new lease. The licensee argues that it has security of tenure. What is the nature of the licensee’s occupation of the property?
  • Distinction between a lease and a licence
  • Termination of a commercial lease
  • Termination of a commercial licence

Following termination by the licensor of a commercial licence to occupy, the licensee has remained in occupation for 14 months, paying rent to the licensor. The parties have been actively negotiating a new lease. The licensee argues that it has security of tenure. What is the nature of the licensee’s occupation of the property?

Distinction between a lease and a licence

It is important to distinguish between a lease (ie a tenancy) and a licence (see Street v Mountford for the distinction between a tenancy and licence). A lease gives rise to a relationship of landlord and tenant, and is a proprietary right. A licence, on the other hand, is a purely personal right to occupy some premises and no security of tenure can arise under a licence.

Termination of a commercial lease

Part II of the Landlord and Tenant Act 1954 (LTA 1954) makes provision relating to business tenancies. LTA 1954, s 23(1) provides that LTA 1954, Pt II

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