In the world of commercial property, landlords and tenants often seek flexible arrangements that do not lock either party into long-term commitments. One such arrangement is known as a tenancy at will. This type of agreement can offer a temporary and convenient solution when a longer-term lease is not immediately practical or desirable.
At Blackstone Solicitors, we regularly advise clients across England and Wales on commercial tenancy matters, including the drafting and interpretation of tenancy at will agreements. In this article, we explore what a tenancy at will is, when it is used, how it works, and what both landlords and tenants should be aware of when entering into such an arrangement.
Free Initial Telephone Discussion
For a free initial discussion with a member of our New Enquiries Team, get in touch with us today. We are experienced in dealing with all the legal aspects of commercial property law, and once instructed, we will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help ensure you are on the best possible footing from the start and also avoid the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or click here to make a free enquiry and a member of the team will get back to you.
What is a Tenancy at Will?
A tenancy at will is a type of short-term occupational arrangement that allows a tenant to occupy a property on a temporary basis. Crucially, it exists without a fixed term and can be ended at any time by either the landlord or the tenant.
Unlike other types of leases or licences, a tenancy at will:
- Is not intended to be permanent
- Does not confer security of tenure under the Landlord and Tenant Act 1954
- Can be terminated immediately and without notice by either party
- Is often used while negotiating a formal lease or waiting for legal processes to complete
This makes it a useful tool in specific circumstances but one that must be approached with caution and clarity.
Key Characteristics of a Tenancy at Will
A tenancy at will has several defining features that set it apart from other tenancy arrangements:
- No Fixed Term
The agreement is open-ended but can be brought to an end at any time. It does not automatically roll over or renew.
- Mutual Right to Terminate
Either party can terminate the agreement at any time, usually with immediate effect. There is no requirement for a minimum notice period unless specified.
- No Security of Tenure
Importantly, the tenant does not acquire any rights under the Landlord and Tenant Act 1954. This means they have no statutory right to renew or remain in occupation after the tenancy is ended.
- Typically in Writing, but Can Be Implied
Although it is best practice to put the arrangement in writing, a tenancy at will can arise by conduct—such as when a tenant is allowed to remain in occupation after the expiry of a formal lease while a new lease is being negotiated.
- Commercial Use
Tenancies at will are almost exclusively used for commercial properties. They are not generally suitable for residential occupation.
When is a Tenancy at Will Used?
Tenancies at will are commonly used in commercial property scenarios where both parties require flexibility. Typical situations include:
- Pending Lease Negotiations
Where the parties are negotiating the terms of a longer lease but the tenant wishes to take early possession, a tenancy at will allows occupation without prejudice to the ongoing discussions.
- Holding Over After Lease Expiry
If a lease has expired and the tenant is allowed to remain in occupation while a new lease is being finalised, this arrangement can be formalised as a tenancy at will.
- Short-Term Access
A landlord may grant access to a property on a short-term basis while the tenant undertakes fit-out works or conducts inspections.
- Interim Solution
Where a landlord is considering redeveloping or selling the property, but wishes to generate income or retain flexibility, a tenancy at will may serve as a temporary solution.
Drafting Considerations
Although tenancies at will are intended to be informal and flexible, it is still highly advisable to have a clearly drafted written agreement. Poorly drafted or ambiguous arrangements can inadvertently give rise to a periodic tenancy, which may grant the tenant rights that were never intended.
Key clauses to include are:
- Express confirmation that the agreement is a tenancy at will
- A statement that the agreement can be terminated by either party at any time
- Clarification that the agreement does not create a periodic tenancy or confer rights under the Landlord and Tenant Act 1954
- Rent provisions and payment terms
- Use of the premises and permitted activities
At Blackstone Solicitors, we assist both landlords and tenants in drafting clear and enforceable tenancy at will agreements tailored to their specific needs.
Risks and Pitfalls
While tenancies at will offer useful flexibility, there are risks involved:
- Risk of Periodic Tenancy
If rent is paid at regular intervals (e.g., monthly), and no formal documentation is in place, a court may interpret the arrangement as a periodic tenancy. This can lead to the tenant acquiring security of tenure under the 1954 Act.
- No Security for the Tenant
From the tenant’s perspective, a tenancy at will offers no protection. The landlord can terminate the arrangement at any time, which may leave the tenant without premises at short notice.
- Uncertainty and Disputes
Because of their temporary nature, tenancies at will can create uncertainty, especially if parties operate under the arrangement for a prolonged period. This uncertainty may lead to disagreements over responsibilities and termination.
- Inadvertent Creation of Lease
Care must be taken not to draft the agreement in a way that suggests a lease or implies fixed-term obligations, as this may alter the legal nature of the arrangement.
Comparison with Other Types of Tenancy
To better understand the nature of a tenancy at will, it’s helpful to compare it with other commercial occupation types:
| Type of Occupation | Fixed Term | Notice Required | Security of Tenure | Typical Use Case |
| Tenancy at Will | No | No (immediate) | No | Interim/temporary |
| Licence to Occupy | Sometimes | Yes (contractual) | No | Shared spaces/short-term |
| Periodic Tenancy | Yes | Yes | Yes (if commercial) | Rolling monthly lets |
| Lease (Contractual) | Yes | Yes (as agreed) | Yes (unless excluded) | Long-term commercial |
How to Terminate a Tenancy at Will
Termination of a tenancy at will is simple. Either party can bring it to an end at any time and without notice. That said, best practice would involve written confirmation of termination to prevent any misunderstanding.
Upon termination:
- The tenant must vacate the property immediately
- Any unpaid rent should be settled
- The landlord should confirm the return of keys and assess for any damages
In some cases, if the tenant refuses to vacate, the landlord may need to seek possession through the courts, though this is less common with properly drafted tenancies at will.
Legal Advice is Essential
Given the legal nuances involved, it is critical for both landlords and tenants to seek advice before entering into or relying on a tenancy at will. Misunderstandings or poor drafting can have costly consequences, especially if a more permanent tenancy is inadvertently created.
At Blackstone Solicitors, our commercial property team advises clients across England and Wales on the proper use of tenancies at will. We can:
- Draft tailored tenancy at will agreements
- Review existing arrangements to assess risk
- Advise on transitioning from a tenancy at will to a formal lease
- Assist with termination and enforcement if disputes arise
Conclusion
A tenancy at will is a highly flexible, short-term arrangement that provides both landlord and tenant with the ability to start or continue an occupation without long-term obligations. However, because of its informal nature, it carries a number of legal risks if not handled carefully.
Whether you are a landlord considering granting temporary access, or a tenant looking to occupy premises before a full lease is agreed, having proper legal advice is key to protecting your interests.
If you require assistance with a tenancy at will or any other commercial property matter, contact the expert solicitors at Blackstone Solicitors today.
We have a proven track record of helping clients deal with the legal aspects of Tenancies at Will. We will guide you through the process and ensure all checks are carried out swiftly and efficiently and we firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.
How to Contact Our Commercial Property Solicitors
It is important for you to be well informed about the issues and possible implications of commercial property law. However, expert legal support is crucial in terms of ensuring a positive outcome to your case.
To speak to our Commercial Property solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
Comments are closed.
