Licences and tenancies at will

A licence generally permits someone to do something on another’s property which would otherwise be unlawful. Licences do not generally benefit from the same level of statutory protection that many leases do (such as security of tenure or compensation for improvements).

A tenancy at will is a tenancy which is terminable at the will of either the landlord or the tenant. They are flexible but do not provide either party with any certainty or security.

Licences and tenancies at will are often seen as a way to allow occupation and use of premises on an ‘easy in, easy out’ basis without the need to follow complex statutory procedures.

Types of licence

Licences can be divided into three categories:

•
a bare licence
•
a licence coupled with the grant of an interest
•
a contractual licence

Licences can be expressly created or arise by implication.

For further details on the nature of licences, see Practice Note: Leases and licences

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