Solicitor Ed Williams, in our Commercial Property team, explains what a Tenancy at Will is.
A tenancy at will is an agreement for occupation that either party (a landlord or a tenant) can terminate at any time. It can be expressly documented or implied by conduct, but, like most things, it is simpler for all parties if the tenancy at will is properly documented.
Tenancies at will are, in effect, a personal relationship between the original landlord and tenant. They cannot be assigned, and they will terminate if there is a transfer of the superior title or upon the death of either party (if that party is an individual).
Tenancies at will are also not considered a ‘tenancy’ for the purposes of Part II of the Landlord and Tenant Act 1954. If correctly implemented, a tenant will not gain security of tenure. However, if not properly implemented or drafted, the opposite can occur, and they may be interpreted as a periodic tenancy, which could result in the tenant obtaining security of tenure.
When is a Tenancy at Will appropriate?
Tenancies at will are often used where the parties are in negotiations for a lease to be granted and the transaction requires a short-term arrangement whilst a lease is being finalised. They are only appropriate for a short period because, otherwise, a periodic tenancy may be inferred. A periodic tenancy requires notice to terminate and cannot be contracted out of the security of tenure provisions. It is therefore important that tenancies at will are used appropriately.
Advantages of a Tenancy at Will
- A tenancy at will is generally a short document and can be prepared and put in place quickly, making it useful as a stopgap.
- A properly drafted tenancy at will is outside the ambit of the Landlord and Tenant Act 1954 and does not confer security of tenure on the tenant.
Disadvantages of a Tenancy at Will
- Tenancies at will can be terminated instantly, which may not offer sufficient security to either the tenant or the landlord.
- Tenancies at will are not always appropriate for every situation, and incorrect usage or poor drafting could easily result in an unwanted periodic tenancy. This would grant the tenant security of tenure, which is probably not what the parties intended.
Conclusion
Tenancies at will serve as a useful stop gap, but they are only appropriate in certain circumstances, usually whilst a more long-term lease arrangement is being negotiated. When in doubt, seek legal advice to ensure they are suitable for your situation.
If you need legal advice in relation to a lease, please do get in touch with our Commercial Property team.
For further information or legal advice, please contact law@blandy.co.uk or call 0118 951 6800.
This article is intended for the use of clients and other interested parties. The information contained in it is believed to be correct at the date of publication, but it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional advice.
