Lease vs Licence: Rights, Statutory Protection and Case Law
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Leases and licences: proprietary and personal rights
Leases give an individual a proprietary right in land which is binding on any third parties, while a licence gives a personal right that can be revoked at any time, as stated in Thomas v Sorrell. Licences are also not binding on third parties.
Furthermore, if one obtains a lease, they will have statutory protection under the Rent Act 1977 and the Housing Act 1996, which do not allow the leaseholder to be evicted simply and which provide rent control. As opposed to this, a licence does not provide any statutory protection to the occupier.
Court difficulties in distinguishing leases and licences
As such, most occupiers of properties would like to establish a lease instead of a licence, as a lease... Continue reading "Lease vs Licence: Rights, Statutory Protection and Case Law" »