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How to Become Aware of the Legal Rights & Duties of a Commercial Property in West Sussex?

Are you a commercial property occupier? Are you fully aware of the legal basis of the possession? The most common practice for occupations based around commercial property West Sussex is following terms for a property Lease or a Licence.

But, there are crucial differences between a Lease and a Licence. And significant implications can arise if the occupants are doubtful or unaware of their legal rights and duties. Hence, commercial property consultants West Sussex are the right people to ask for professional help.


What is a property lease?

A Lease is a property credit granted by a proprietor to a renter. A property owner usually leases to the occupants for many years, which customarily contain particular provisions.

Like a freehold interest in the land, a leasehold interest can be purchased and sold.

A lease grants a resident a right to the ‘exclusive possession’ of the property for a definite time period. Exclusive possession of a commercial property in West Sussex means the legal rights for eliminating others from that property.

As per commercial property law, if an agreement gives exclusive possession for a set term at a rent, it is not a Licence, but a Lease.

While a commercial property lease gives the assurance of a fixed rental period for a landlord, for a resident, it gives the agreement of a definite period of possessions.

What is a property licence?

A property Licence is a personal right granted by an owner to the renter, often to occupy a property for a short period of time, up to 6 months.

Unlike a property lease, a Licence cannot be traded. There is no “exclusive possession” given to the licensee. Therefore, the licence holder is exempted from eliminating all others from the property.

Further, property Licence can be revoked at any time, and the licensee will be bound to leave the property immediately. It means there is no certainty in property licencing.

Even, if the licensor sells the property, the Licence will be nullified and the licensee’s personal right to occupy the property gets ceased.

However, property owners must be careful when giving Licences. If a property owner mistakenly gives in to a licensee, the Licence will be considered as a property Lease, offering the licensee with the benefits from the statutory protection. Therefore, the situation may be difficult for the property owner to end the occupancy.

As stated by the top commercial property consultants in West Sussex, the major benefit of licences over leases is that licences can be granted quickly and cheaply where short term occupation is intended.

Property Licence offers more flexibility for a property owner as it can be revoked instantly. But, from an occupant’s point of view, such flexibility might not be as impressive.

If you are looking for a leased or licensed property, hire local commercial property finders West Sussex for professional help and guidance.

If you would like to discuss any of the issues being a property owner, as well as a tenant, please contact a local business, like KBA for commercial property West Sussex consultation and legal support.