News & Insights

Licence to Lease…

Foskett Marr Gadsby & Head LLP briefly set out the distinction between licences and leases, which may be useful to owners and occupiers of commercial premises deciding how to document short term occupation of a property.

Owners/occupiers ought to give careful consideration to the document as there are different legal implications depending on whether a licence or lease is used.


  • Grants personal right or permission that offers no security
  • Does not benefit from the protections given by the Landlord and Tenant Act 1954
  • Falls outside the Minimum Energy Efficiency Standards regime
  • Exempt from Stamp Duty Land Tax liability


  • Grants exclusive possession (a person has exclusive possession if they can exercise the rights of the owner and exclude the landlord/third parties from the land, though landlord may have re-entry rights)
  • Grants legal interest in land and binds successors in title
  • Granted for a term normally with a rent
  • May benefit from the protections given under the Landlord and Tenant Act 1954 (see
  • There may be a Stamp Duty Land Tax Liability on the grant of the lease

If you wish to discuss further, please contact Foskett Marr Gadsby & Head LLP’s Property Teams, based in Epping and Loughton, on 01992 578 642. Further details on should note that the label of any document can be immaterial, it is the substance of the document that needs to be taken into consideration.