Q&As

My client is the owner of land and intends to grant a 20-year lease to the local parish council of some land, which will be used as a bus stop. Would this tenancy meet the criteria for a protected tenancy under the LTA 1954?

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Published on LexisPSL on 03/11/2015

The following Property Disputes Q&A provides comprehensive and up to date legal information covering:

  • My client is the owner of land and intends to grant a 20-year lease to the local parish council of some land, which will be used as a bus stop. Would this tenancy meet the criteria for a protected tenancy under the LTA 1954?
  • Lease or licence?
  • LTA 1954

My client is the owner of land and intends to grant a 20-year lease to the local parish council of some land, which will be used as a bus stop. Would this tenancy meet the criteria for a protected tenancy under the LTA 1954?

We have not been able to locate an authority which directly deals with this issue. However, we have set out below the criteria involved in establishing whether there is a licence or lease in place, and if there is a lease, whether that lease will be protected under the Landlord and Tenant Act 1954 (LTA 1954).

Lease or licence?

In Street v Mountford, the House of Lords identified the hallmarks of a tenancy as:

  1. exclusive possession of defined premises

Payment of rent might also be an indication of a tenancy, but is not essential.

Determining whether the agreement proposed will be a lease or a licence will depend upon the substance of the agreement as a whole, rather than the form, ie if the parties in fact have reached an agreement which amounts to exclusive possession, this cannot be offset by simply labelling an agreement in a certain way.

While defined premises will be clear, it is not always straightforward ascertaining whether or not exclusive possession has been granted. One of the most important factors in that regard is the degree of control the grantor will

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