Code agreements for a minimum term—lease or licence? (AP Wireless v On Tower)
Property Disputes analysis: The Court of Appeal have recently considered, following an appeal by AP Wireless II (UK) Ltd (‘APW’), whether an agreement which provides for a ‘minimum term’ is a lease or a licence. The tribunal’s original decision was that an agreement which was expressed to be for a minimum term of ten years would be a licence, rather than a lease, as there was no term certain. The Court of Appeal agreed with the tribunal’s decision that such an agreement was a licence, even with exclusive possession and rent forming part of the agreement. The distinction between an agreement being a lease or licence is an important one, particularly when considering how to deal with the renewal or termination of such an agreement. Written by Katie Briggs, principal associate and Roxanne Watson, associate in Property Litigation at Browne Jacobson LLP.