Leases and Licences

Lease Agreements

The Law of Property Act 1925 provides that leases will be void for the purpose of creating a legal estate in land unless they are made by deed. Under the Legal Services Act 2007, only certain authorised professionals are permitted to prepare deeds, which limits who can undertake this work.

As surveyors, we have specific authority to prepare deeds which create or relate to Farm Business Tenancies (FBTs) granted under the Agricultural Tenancies Act 1995. We can also draft certain leases taking effect for a term of less than 3 years, as these are exempted from the deed rule.

If you would like us to draw up a lease agreement for you, please do not hesitate get in touch. We may recommend a solicitor for your specific circumstances, but in which case we can still assist by preparing detailed Heads of Terms. We can also advise if a simpler licence agreement may be more appropriate.

Conversely, it may be that you have a lease with rent review provisions and would like advice on whether to implement any reviews and how much rent you should be charging (or paying, if you are the lessee). Whichever the case, please feel free to contact us for an initial consultation.

Licence Agreements

These types of agreements are usually simpler and more cost effective than lease agreements. However, licence agreements are only suited to certain situations (such as short term temporary arrangements, where the landowner still requires access to the land or property).

Licence agreements must be drafted very carefully, as some agreements which are stated to be licences have nevertheless been held by the courts to be leases. This can have significant consequences for both parties, so it is essential to consult an experienced surveyor or solicitor to advise you.

If held to be a lease, tenants can only be evicted on a limited number of grounds, and even then may be entitled to compensation from the landlord. This could also be the case if you haven’t put anything in writing so, whatever the arrangement, it is important to ensure it is properly documented.

Accordingly, if you need a licence agreement (for example for a contractors compound, access licence, early entry licence, survey licence, works licence or shooting licence, to name a few!), please do not hesitate to get in contact and we would be happy to discuss this with you.