Image from Google Jackets

Occupation of business premises pending completion

By: Language: English Series: Law Society`s Gazette ; 84(36) 7 October 1987, 2850-2856(3)Publication details: 1987Subject(s): Summary: Discusses the problems for landlords which can arise when potential tenants are allowed to occupy business premises before terms are finally agreed. Warns on the wisdom of ensuring that the intended tenant does not acquire security of tenure under the Landlord and Tenant Act 1954 , while application to the court to exclude such security is pending. Three possible methods of avoiding this situation are open to the prospective landlord: 1) granting of a tenancy at will , 2) granting of a licence , or 3) granting a short term lease pending the court application. Concludes that while none of the methods are ideal, licences are best avoided, illustrating the decision in Street v Mountford , HL 2 May 1985, see Abstract 34734, where it was decided that exclusive occupation of a property at a rent for a term created a lease and not a licence.

Discusses the problems for landlords which can arise when potential tenants are allowed to occupy business premises before terms are finally agreed. Warns on the wisdom of ensuring that the intended tenant does not acquire security of tenure under the Landlord and Tenant Act 1954 , while application to the court to exclude such security is pending. Three possible methods of avoiding this situation are open to the prospective landlord: 1) granting of a tenancy at will , 2) granting of a licence , or 3) granting a short term lease pending the court application. Concludes that while none of the methods are ideal, licences are best avoided, illustrating the decision in Street v Mountford , HL 2 May 1985, see Abstract 34734, where it was decided that exclusive occupation of a property at a rent for a term created a lease and not a licence.