Whether an agreement is a tenancy or a licence is a question that often faces landlords and tenants. In broad terms, tenancies give significantly greater protection to tenants than licences.
The recent High Court decision in Clear Channel UK Ltd v Manchester City Council [2004] EWHC 2873 (Ch); [2004] PLSCS 295 makes it clear that an agreement for the siting and use of advertising hoardings may well amount to a tenancy despite attempts to call it something else. The case has wider implications for structures such as telecommunications masts and signs, where such issues will also arise.
In particular, it highlights the importance of deciding as quickly as possible whether the agreement is a tenancy or a licence. The courts will look at the parties’ intention and not the name mentioned in the document, so the parties should avoid agreeing heads of terms and failing to complete legal formalities. If early access is granted prior to the completion of legal formalities, the terms of that early access should be recorded.
Andrew Glynn is head of the property group at TLT Solicitors
Whether an agreement is a tenancy or a licence is a question that often faces landlords and tenants. In broad terms, tenancies give significantly greater protection to tenants than licences.
The recent High Court decision in Clear Channel UK Ltd v Manchester City Council [2004] EWHC 2873 (Ch); [2004] PLSCS 295 makes it clear that an agreement for the siting and use of advertising hoardings may well amount to a tenancy despite attempts to call it something else. The case has wider implications for structures such as telecommunications masts and signs, where such issues will also arise.
In particular, it highlights the importance of deciding as quickly as possible whether the agreement is a tenancy or a licence. The courts will look at the parties’ intention and not the name mentioned in the document, so the parties should avoid agreeing heads of terms and failing to complete legal formalities. If early access is granted prior to the completion of legal formalities, the terms of that early access should be recorded.
Andrew Glynn is head of the property group at TLT Solicitors
