Lease or licence the difference why it matters

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Lease or Licence. The Difference. Why it Matters.

A lease is a grant of exclusive possession of land or property. A licence is a permission to do something on the licensors’ land or property. The distinction is important because different legal rights and protections attached to leases and licences. A document is not simply comprised of the label that is put upon it. The courts look into the terms of the agreement. Therefore, they look at the substance and intentions of the parties in order to analyse the arrangements between them. In the recent matter of Watts v Stewart and others [2016] EWCA Civ 1247 the Court of Appeal was asked to consider whether, Mrs Watts a resident of an almhouse, was a tenant or licencee. Mrs Watts had signed a letter of appointment with the charity when she took up residence. The terms of the agreement referred to the conditions of tenancy. Mrs Watts was served a notice to quit the property. This was because of her antisocial behavior. Legal proceedings were also issued for possession.


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