Commercial Property Leases: Freehold - Leasehold - Commonhold by Ford Banks Irwin Solicitors - The Property Lawyers in Manchester
Please note: Not to be used or relied upon without legal advice. These notes are for illustrative purposes ONLYFreehold - Leasehold - Commonhold
Clients often say they own
a Property. Property Law
Solicitors and Lawyers
need to ascertain how the ownership of the Property exists in Law.
There are three forms of ownership. Section 1 of
the Law of
Property Act 1925 provides two ways a client can say to his Solicitor
that he owns a Property. Firstly, where the client
has an
estate in fee simple absolute in possession (more frequently described
as freeholder). Secondly, a term of years absolute (more
frequently described as Leaseholder). Thirdly, a commonhold
interest was created by the Commonhold and Leasehold Reform Act 2002
(this is not widely used at present). Freehold is the most
secure
form of ownership.
Landlord - Tenant - Licensee - Trespasser
Commercial Property Solicitors and Lawyers need to be able to define the interest in Property relative to those of other people. Whilst the clients interest is generally as freeholder or leaseholder an occupier can also be defines as a Tenant, Licensee or Trespasser.
Tenant:
To establish a Landlord and Tenant relationship the following points need to be considered:
(i) Is there a valid legal Landlord and Tenant?
(ii) Does the Tenant have exclusive possession of the Property?
(iii) Is the Property clearly identifiable ?
(iv) Is the tenancy for a definite period ?
(v) the Landlord must be entitled to the Property at the end of the Term.
Licensee:
A Licensee is simply an occupier who has permission to use the Property. A Licence can be created in writing or verbally. It is important to consult with your Solicitor before granting a Licence to ensure you fully understand the rights and obligations associated with a Licence.
Trespasser:
An occupier who does not have any permissions such as a squatter.
All occupiers of a Property can be described as a Freeholder, Leaseholder, Tenant, Licensee or Trespasser. Ford Banks Irwin Solicitors will assist with defining the occupier and establishing all the rights and obligations associated with each category.
Landlord - Tenant - Licensee - Trespasser
Commercial Property Solicitors and Lawyers need to be able to define the interest in Property relative to those of other people. Whilst the clients interest is generally as freeholder or leaseholder an occupier can also be defines as a Tenant, Licensee or Trespasser.
Tenant:
To establish a Landlord and Tenant relationship the following points need to be considered:
(i) Is there a valid legal Landlord and Tenant?
(ii) Does the Tenant have exclusive possession of the Property?
(iii) Is the Property clearly identifiable ?
(iv) Is the tenancy for a definite period ?
(v) the Landlord must be entitled to the Property at the end of the Term.
Licensee:
A Licensee is simply an occupier who has permission to use the Property. A Licence can be created in writing or verbally. It is important to consult with your Solicitor before granting a Licence to ensure you fully understand the rights and obligations associated with a Licence.
Trespasser:
An occupier who does not have any permissions such as a squatter.
All occupiers of a Property can be described as a Freeholder, Leaseholder, Tenant, Licensee or Trespasser. Ford Banks Irwin Solicitors will assist with defining the occupier and establishing all the rights and obligations associated with each category.
