The Rent Review Specialist
Tenancy-at-will
Tenancy
A tenancy exists when someone lets premises to another for a term in return for a rent. There are three types of tenancy:
There is another type of occupancy, known as licence.
Normally, the term is for a number of years, but it is possible to create a weekly, quarterly or yearly tenancy.
A tenancy can come into existence in one of three ways:-
A. On grant of a document, called a lease. A lease is usually a deed. This is the most common normal method of creating a business tenancy.
B. Tenancies for three years or less can be created by a document that is not a deed. A document of that type is often referred to as a "tenancy agreement" rather than a "lease".
C. A tenancy can also be created by verbal/oral arrangement between the parties or by conduct, for example where the landlord lets the tenant into possession and, with the intention of creating a tenancy, the tenant pays rent and the landlord accepts it. It is not generally prudent for a landlord to create a tenancy in that way, because of the question of proving the terms of the agreement and whether the landlord has any right to take back the premises should the tenant fail to pay the errant. Also, under this arrangement, the tenant may qualify for rights per Landlord and Tenant Act 1954.
A tenancy-at-will is a tenancy for occupation of premises for a period less than 12 months, where either landlord or tenant may terminate the tenancy at any time. Tenancies at will are commonly used for temporary occupancies but should be avoided unless the parties are trustworthy because, although a tenancy at will is excluded from protection of Landlord and Tenant Act 1954, any oversight in the operation of the agreement could result in a tenancy-at-will becoming a periodic tenancy and possibly qualify for rights under Landlord and Tenant Act 1954. A tenancy-at-will can arise after expiry of a contractual term of tenancy where the tenant has failed to protect its renewal rights under the Landlord and Tenant Act 1954 but remains in occupation of the premises and continues to pay rent.
A periodic tenancy - also known as a tenancy from year to year, month to month, or week to week - is a tenancy that exists for some period of time determined by the term of the payment of rent. Periodic tenancies may qualify for renewal rights under Landlord and Tenant Act 1954, particularly where the landlord has demanded and accepted rent for at least 12 months after the expiry of a contractual tenancy.
The expression "business tenancy" is used to refer to a tenancy of premises that are used for the purposes of a business. The premises may be a building, part of a building or open land. In older leases, premises are often described as demised premises. (A demise is a legal term meaning the conveyance or transfer of property or a title by demising.)
- 1. Simple tenancy, usually known as a tenancy.
- 2. Tenancy-at-will
- 3. Periodic tenancy
There is another type of occupancy, known as licence.
Normally, the term is for a number of years, but it is possible to create a weekly, quarterly or yearly tenancy.
A tenancy can come into existence in one of three ways:-
A. On grant of a document, called a lease. A lease is usually a deed. This is the most common normal method of creating a business tenancy.
B. Tenancies for three years or less can be created by a document that is not a deed. A document of that type is often referred to as a "tenancy agreement" rather than a "lease".
C. A tenancy can also be created by verbal/oral arrangement between the parties or by conduct, for example where the landlord lets the tenant into possession and, with the intention of creating a tenancy, the tenant pays rent and the landlord accepts it. It is not generally prudent for a landlord to create a tenancy in that way, because of the question of proving the terms of the agreement and whether the landlord has any right to take back the premises should the tenant fail to pay the errant. Also, under this arrangement, the tenant may qualify for rights per Landlord and Tenant Act 1954.
A tenancy-at-will is a tenancy for occupation of premises for a period less than 12 months, where either landlord or tenant may terminate the tenancy at any time. Tenancies at will are commonly used for temporary occupancies but should be avoided unless the parties are trustworthy because, although a tenancy at will is excluded from protection of Landlord and Tenant Act 1954, any oversight in the operation of the agreement could result in a tenancy-at-will becoming a periodic tenancy and possibly qualify for rights under Landlord and Tenant Act 1954. A tenancy-at-will can arise after expiry of a contractual term of tenancy where the tenant has failed to protect its renewal rights under the Landlord and Tenant Act 1954 but remains in occupation of the premises and continues to pay rent.
A periodic tenancy - also known as a tenancy from year to year, month to month, or week to week - is a tenancy that exists for some period of time determined by the term of the payment of rent. Periodic tenancies may qualify for renewal rights under Landlord and Tenant Act 1954, particularly where the landlord has demanded and accepted rent for at least 12 months after the expiry of a contractual tenancy.
The expression "business tenancy" is used to refer to a tenancy of premises that are used for the purposes of a business. The premises may be a building, part of a building or open land. In older leases, premises are often described as demised premises. (A demise is a legal term meaning the conveyance or transfer of property or a title by demising.)