Letting Agreement or License?
Letting Agreement - is ideal for short term 'occasional use' of school premises up to 6 months
License - is ideal for anything over a 6 months period as after 6 months it could be argued that it was no longer 'occasional hire' of the premises.
A licence is simply permission for a licensee to do something on a licensor's property. A licence is by definition not a lease: it is a personal right or permission. The distinguishing feature of a lease, as opposed to a licence, is that the tenant has exclusive possession of the let property
Tenancies can arise inadvertently when licences have been used inappropriately. In the event that a tenant exclusively occupies a property, pays rent and they have been granted a written licence, they can later on assert that they have a tenancy. It is established case law that if an agreement satisfied all the requirements of a tenancy, then the agreement produced a tenancy and the parties cannot alter the effect thereof by insisting that they only created a licence.
Where the document has any of the following characteristics, this may indicate that a "licence" is not a licence:
· It grants exclusive possession.
· It is for a fixed term.
· It reserves a rent.
The LGB can grant licences but not leases, this has to be done by the Trust
The draft licence that WS Law provide envisages a much longer period of use of the school premises (6 months to a year or even longer) while achieving the same goal of protecting the Trust from any claim by a group or organisation for some sort of security of tenure relating to the property. This can all be done on the GLF Gold MAT retainer for free. WS Law can also provide the necessary letters terminating the licences.
The keyholding agreement should be used for hirers, contractors and school staff.
A lease is a contract renting land, buildings, etc., to another for a specified period or for a period determinable at the will of either lessor or lessee inconsideration of rent or other compensation.
A lease is required where exclusive use is given. Where an organisation has use of a space which is then not usable by the school, for example a private nursery provider: this must be a contracted out lease which will need to be negotiated by our legal team and will come with a legal cost attached (but this can be built info the rental).
Only the GLF Schools Trust can grant a Lease.