Business Leases and Licences in Devon
Deciding whether to use or agree to a lease or a licence is an important decision. There are key differences between the two, and our Business Leases and Licences Solicitors in Devon can advise you on which is right for your situation.
Choosing Between a Lease or a Licence
Should you choose a licence or a lease? The answer depends on your circumstances. Features to be clear about include the presence of regular periodic payments and a specific end-date to the agreement. There are benefits and obligations to both. Being clear on these beforehand is crucial, as signing the wrong agreement may leave your rights unprotected or negatively affect your business.
Understanding Exclusive Possession
One of the key elements of a lease (as opposed to a licence) is exclusive possession. A person has exclusive possession if they can exercise the rights of the landowner and exclude both the landlord and third parties from the land, except where the landlord has reserved rights of entry, for example to carry out works.
Possession is not the same as occupation: a tenant may have possession by virtue of being able to receive the rents and profits of the land, while the person in occupation could be the undertenant to whom the tenant has granted an underlease.
Just because you might call the agreement a “licence” does not mean it is one. A lease may still come into existence, notwithstanding the express terms of the contract, if exclusive possession is granted. If a business lease comes into existence unintentionally, the tenant may acquire security of tenure, making it difficult to regain control of the property.
Expert Advice for Landlords and Tenants
Our legal experts advise business landlords and tenants on setting up the right agreement for them. Drafting a lease or a licence, explaining the terms, obligations and liabilities, is done free from legal jargon. We work with you to resolve any issues and ensure costs, timescales, and likely outcomes are clear.
If your licence or lease needs to be amended or it is time for renewal, our solicitors can assist to make the process straightforward and stress-free.
Free Initial Consultation
For expert guidance on business leases and licences in Devon, contact us today to arrange your FREE initial consultation.