Leases and Licenses

• What is a license?

  A temporary and conditional permission to use land
• Examples of licenses

  • To grow vegetables on a piece of land
  • To shop
  • To park on a neighbour's land
• What is a lease?

  A grant of land for a period of time which allows for exclusive possession
• What are the four requirements for a joint tenancy?

  • Unity of posession
  • Unity of interest
  • Unity of title
  • Unity of time
• Unity of possession


  Each joint tenant must be entitled to possession of every part of the co-owned land
• Unity of interest


  Each joint tenant's interest in the estate must be the same in extent, nature and duration
• Unity of title


  Each joint tenant must derive their title to the estate from the same act or document
• Unity of time


  The interest of each joint tenant must normally vest at the same time
• What are the types of licences?

  • Bare licences
  • Licences coupled with interest
  • Contractual licences
  • Licences by estoppel
• What are the three types of leases?

  • Tenancy for a 10-year term
  • Periodic tenancy
  • Tenancy at will
• What are the requirements for a lease?

  • Exclusive possession
  • Certainty at term
• What is meant by exclusive possession?

  • The tenant has the legal right to exclude anyone from the property
  • The court will ignore sham agreements
  • Looks at the the content of lease agreements rather than form
  • Burden of proof is on the claimant
• What is a fixed term in relation to certainty at term?

  Maximum duration of lease is known from the outset, is specific and expressly stated
• What is a periodic term in relation to certainty at term?

  Duration of lease runs in periods that are automatically renewed, unless either party serves a notice to quit
• What are property guardians?

  • Residents for unused premises they don't normally own but are there to safeguard the property
  • Often commercial or industrial buildings not adapted to residential acommodation
• What were the facts of Camelot Guardian Management Ltd v Khoo 2018?


  • Khoo inhabited the premises with 14 others as property guardians
  • His agreement didn't allow for exclusive possession and had to vacate once terminated
  • Khoo refused to vacate when it was terminated
  • Judge decided it was a licence
• What were the facts of Antonaides v Villiers 1990?


  • Mr Villiers and Ms Bridgers signed separate, identical documents to occupy a one bed flat
  • The agreements were stated as licences
  • Satted the Rents Act didn't apply and the couple didn't hold exclusive possession
• What were the issues of Antonaides v Villiers 1990?


  • Antonaides sought possession of the flat on the basis that the agreement didn't meet a tenancy
  • The couple argued the agreement was a sham to avoid a joint tenancy
• What was the decision in Antonaides v Villiers 1990?


  • The Court found the agreement to be a lease and was a sham
• What were the facts of Westminster City Council v Clarke 1992?


  • WCC provided hostel accomodation for homeless single persons
  • The agreement was a licence and included a provision that he could share a room
  • The agreement could terminate the license with 7 days notice
• What was the issue in Westminster City Council v Clarke 1992?


  • WCC claimed their agreement wasn't a sham but a protections for occupiers and was necessary to provide effective accomodation
  • Clarke argued he was a secure tenant under the Housing Act 1985
• What was the decision in Westminster City Council v Clarke 1992?


  • Clarke was held to be a licensee
  • The conditions within the agreement were genuine and necessary
• What were the facts of AG Securities v Vaughn 1990?


  • AG Securities possessed a long lease of a four bedroom property
  • Each tenant signed individual agreements separately
  • The tenants claimed joint tenancy
  • Court of Appeal ruled in favour of Vaughn
• What was the issue in AG Securities v Vaughn 1990?


  • Whether they could rely on a collective lease under the Rent Act 1977
• What was the decision in AG Securities v Vaughn 1990?


  • Vaughn and others were licensees and couldn't rely on the Rent Act 1977
  • None of the licensees were given exclusive possession but had the right to share the flat
• What were the facts of Street v Mountford 1985?


  • Street granted a licence to Mountford to occupy two rooms at a weekly rent and could terminate the agreement with 14 days notice
  • The agreement was titled a licence and contained a declaration that it didn't create a tenancy
• What was the issue in Street v Mountford 1985?


  • If the agreement was a licence and not a tenancy then Mountford couldn't claim the right to a fair rent
  • Street argued he intended to create a license
  • Mountford argued that the rights created matter more
• What was the decision in Street v Mountford 1985?


  • Appeal was allowed
  • The only relevant intention was that to confer exclusive possession