Tenancy at will
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Contact our teamA tenancy at will is a flexible, short-term arrangement where a tenant occupies a property with the landlord’s consent, but without a formal lease in place.
This type of agreement can be terminated at any time by either party without notice. It provides a temporary solution for tenants who may need immediate access to a property, while allowing landlords to retain control over the premises until a more permanent arrangement is made.
Unlike longer-term lease agreements, a tenancy at will offers no security of tenure. This means the tenant doesn’t have the legal right to stay in the property if the landlord decides to end the arrangement, making it ideal for short-term or transitional occupancy.
What is a tenancy at will?
A tenancy at will is a type of informal rental agreement that allows a tenant to occupy a property temporarily with the Landlord’s consent, with the understanding that the tenancy can be terminated by either party at any time. It is typically used in situations where both parties need flexibility, such as while a formal lease is being negotiated or when the tenant needs a temporary space.
Key features of a tenancy at will include:
- No fixed term: The tenancy can be ended at any time.
- Lack of security: The tenant has no automatic right to stay if the landlord decides to end the arrangement.
- Short-term flexibility: Often used when a longer-term agreement is not yet in place or needed.
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Partner | Commercial Property, Real Estate, Real Estate Finance
How a tenancy at will works
Tenancies at will are useful in situations where both parties require short-term flexibility, such as during lease negotiations or when a tenant needs temporary occupancy while planning a move or business transition. They are simple agreements but must be handled carefully, as either party can terminate the tenancy without notice, leaving the tenant potentially needing to vacate immediately.
Understanding the differences between a lease, licence to occupy, and tenancy at will
When occupying a property, it’s important to know the distinctions between a lease, a licence to occupy, and a tenancy at will. Each provides different levels of security and flexibility for landlords and tenants.
A lease is typically a long-term agreement that grants the tenant exclusive possession of the property for a set period. It provides stability and usually can’t be ended early, offering security of tenure unless explicitly contracted out under the Landlord and Tenant Act 1954.
A licence to occupy is for short-term use and does not grant exclusive possession. It’s ideal for temporary arrangements, often allowing shared space and can be terminated on short notice by either party.
A tenancy at will offers maximum flexibility, allowing either party to terminate at any time. Though the tenant has exclusive possession (excluding others including the Landlord), there’s no long-term security, making it suitable for transitional periods.
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Senior Associate | Commercial Property, Real Estate, Land Development, Real Estate Finance
Long term vs short term: flexibility in agreements
Leases offer long-term commitment, providing stability, while licences to occupy and tenancies at will are designed for short-term flexibility. Licences are often temporary, while tenancies at will allow termination without notice, offering no long-term security.
Termination and exclusive possession
Leases have a fixed term and cannot usually be ended early. Licences allow for termination with notice, making them flexible. A tenancy at will can be terminated immediately by either party, providing short-term adaptability. While leases and tenancies at will grant exclusive possession, licences often involve shared spaces.
Security of tenure
Leases offer security of tenure, protecting tenants from eviction without a legal process, unless specifically excluded. In contrast, neither licences nor tenancies at will provide such protection, meaning occupiers can be asked to leave at short notice.
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Advantages and disadvantages of a tenancy at will
Tenancies at will provide flexibility for landlords, as they can reclaim possession without offering compensation, and the agreements are simple and cost-effective to set up. However, tenants have no long-term security and can be required to vacate quickly. For landlords, the lack of guaranteed rental income can pose financial risks.
Contact us for expert advice
If you’re considering a tenancy at will or need advice on how this type of agreement could work for your situation, Moore Barlow’s team of experienced solicitors can help. We’ll provide clear guidance and ensure the arrangement meets your needs, protecting your interests. Contact us today to discuss how we can assist you with your tenancy at will arrangements.
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Frequently asked questions
Why use a tenancy at will?
A tenancy at will is used for its flexibility, allowing either the landlord or tenant to end the agreement at any time without prior notice. It’s ideal for short-term arrangements, temporary occupancy, or when parties are negotiating a more formal lease, providing freedom without long-term commitment.
What is the difference between a lease and a tenancy at will?
A lease is a formal, legally binding contract with fixed terms and duration, providing the tenant with security of tenure unless specifically excluded. A tenancy at will, on the other hand, is an informal, short-term arrangement that can be terminated by either party at any time without notice, offering no long-term security.
Can you have a residential tenancy at will?
While tenancies at will are more commonly used in commercial settings, they can be applied to residential properties in limited circumstances. However, most residential tenancies require a formal agreement, like an assured shorthold tenancy, to provide tenants with certain legal protections not offered under a tenancy at will.
Is a tenancy at will 6 months?
No, a tenancy at will does not have a fixed term and can be terminated at any time by either party. Unlike leases, which often have defined periods such as six or twelve months, a tenancy at will remains in place until one party decides to end it.
What is holding over under a tenancy at will?
Holding over under a tenancy at will occurs when a tenant remains in occupation of a property after their previous lease or agreement has expired, without entering a new formal lease. The tenant continues to occupy the property on a temporary, flexible basis until a new agreement is made or they vacate.
Can you charge rent under a tenancy at will?
Yes, rent can be charged under a tenancy at will. The rent terms should be agreed upon by both parties, even though the arrangement is informal and flexible. The tenant pays rent as agreed, and either party can terminate the tenancy at any time, without affecting the rental obligations during the occupancy.
What is tenancy at will notice period?
A tenancy at will typically does not have a fixed notice period, as it is designed to offer maximum flexibility. Either the landlord or tenant can terminate the agreement at any time without prior notice, unless a specific notice period is agreed upon in writing. However, it’s common practice for both parties to give reasonable notice to avoid any sudden disruptions.
Is a tenancy at will legally binding?
Yes, a tenancy at will is legally binding, even though it is an informal arrangement. It grants the tenant the right to occupy the property with the landlord’s consent, but either party can terminate the tenancy at any time. Despite its flexible nature, a tenancy at will still creates a legal relationship between the landlord and tenant, and both parties must abide by its terms while it is in effect.
Tenancy at will vs periodic tenancy
A tenancy at will allows either party to terminate the agreement at any time without notice, offering maximum flexibility. In contrast, a periodic tenancy automatically renews (e.g., monthly or annually) and requires notice from either party to end, providing more structure and stability.
What are the disadvantages of a tenancy at will?
The disadvantages of a tenancy at will include:
- Either party can terminate the agreement at any time without notice, leading to uncertainty for both landlord and tenant.
- Tenants do not have the same rights as those with a formal lease, such as protection from eviction or automatic renewal.
- For commercial tenants, the lack of long-term security can disrupt business operations if the tenancy is unexpectedly ended.
These factors make tenancy at will less suitable for long-term arrangements.
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