It is common for heads of terms to refer to a licence to use or occupy a property when the agreed terms would actually be construed as a lease. The two terms are bandied around and often used interchangeably; knowing the difference is key to avoiding lengthy and costly proceedings which go hand in hand with any disputes. Case law has taught us that labelling a document as a licence does not mean that it isn’t a lease. If certain elements (e.g. exclusive possession) are present then the document will technically be a lease with all the considerations that go with this.