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Licenses are essentially the lawful grant of a right to do something which would otherwise be illegal or wrongful. A licence does not transfer any “interest” in land, but it may authorise the occupier (licensee) to enter the owner’s (licensors) land for some specific purpose.A licence does not provide a licensee with security of tenure of rights as set out in Part II of the Landlord and Tenant Act 1954, although the distinction between a “licence” or a “lease” is not always clear. It is essential that a licence is documented correctly and that the parties’ obligations are clear from the outset.Under a licence, the consideration paid is known as the ‘fee’ instead of the ‘rent’ which is the case for a lease.

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