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ARTICLE · 06 JUNE 2018

Sorting A Lease From A Licence

A recent judgment given by the High Court earlier this year comes as a stark reminder of the difference between a lease and a licence with significant detriment to the landowner.

United KingdomReal Estate and Construction

A recent judgment given by the High Court earlier this year comes as a stark reminder of the difference between a lease and a licence with significant detriment to the landowner. This is not a new point of law, but is one that is becoming an increasingly pressing issue. Licences, once seen as quick, easy documents avoiding the complexities and execution formalities associated with land law, are becoming subject to disputes about their legal nature with major implications for both owners and occupiers.

Alleged arrears led to locks being changed

The case concerned the occupation of office premises at Monteagle Court by the London College of Business. The College had occupied the property since 2006 on the basis of a number of "agreements", some signed some not. The agreements purported to create a series of licences. In 2013 and 2014 there was a dispute between the landowner and the College about the sums due under the agreement. The landowner, deciding that the

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