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Commercial Property: Lease, Licence, or Tenancy at Will? What’s the Difference?
07th Jan 2026
If you’ve ever tried to open a shop, pub, or stall, you’ve likely come across terms like lease, licence, or tenancy at will. Confused? You’re not alone — and this quick guide aims to clear things up.
Licence = Permission
A licence is simply permission from a landowner (the Licensor) to use their property in a specific way. It doesn’t give you a legal interest in the land — just the right to be there for the agreed purpose. Common examples include:
- Early Access Licence
- Licence to Occupy
- Licence for Works or Alterations
Think of it as a temporary, limited right. If the Licensor withdraws consent, the Licensee must leave — very few legal protections apply.
Tenancy at Will = Temporary Legal Interest
A tenancy at will is similar in use but legally quite different. It does grant the Tenant a legal interest in the property, including rights like exclusive possession and quiet enjoyment. It’s often used when a lease is being finalised but the Tenant wants to start trading.
It’s flexible and can be ended at short notice, but it offers more protection than a licence — especially if things go wrong.
Lease = Long-Term Security
A lease is the gold standard. It’s a tailored, legally binding agreement that protects both parties and offers long-term certainty. Yes, leases come with additional legal fees — but they’re an investment in peace of mind for both Landlord and Tenant.
We are here to help with easy to understand advice and transparent pricing.
If you would like to hear more, please don’t hesitate to contact our Commercial Property Team.
*This article is current as of the date of its publication and does not necessarily reflect the present state of the law or relevant regulation.
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