Lease or Licence? A Small Choice with Big Legal Consequences in Irish Property Law

Caution should be exercised by a property owner when deciding whether to grant a Lease or a Licence over a property.

What are the main differences;

• A Lease grants an interest in property and exclusive possession, whereas a Licence does not
• A Licensor has the right to enter a licensed area during the licence period
• A Lease is normally used for longer term arrangements whereas a Licence tends to be for a shorter term
• A Licence is personal to a Licensee unlike a Lease where a tenant normally has a right to assign or sub-let (subject to landlord approval)
• A tenant may obtain renewal rights under a Lease arrangement, where they can call upon a Landlord to grant a new Lease once the term of the initial Lease expires

Care should be taken by a property owner when deciding whether to grant a Lease or a Licence, as although a land owner may only intend to grant a Licence a landowner may unintentionally grant a Lease in circumstances where the agreement has all the characteristics of a Lease, in particular, exclusive possession.

For more information on this topic, please contact Godfrey Hogan on godfrey@gibneyhogan.ie

The content of this article is provided for information purposes only and does not constitute legal or other advice.