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Your agreement

Many groups gain access to their facilities through an agreement. Your agreement will determine whether you can access your facilities in the future.

Some organisations have ‘security of tenure’ for their site or facilities, others don’t. 

But what does it all mean? And how can you check if you've got security or not?

This section will reveal all... 

Signs that you've got security of tenure

'Security of tenure' means having the legal right to use a piece of land or building. This could be for a fixed period or permanently.

An organisation only has security of tenure if they have a lease or freehold. 

 

You've got security, if you have a lease

A lease is an agreement between your organisation and the owner of the property or grounds (freeholder) that your organisation uses.

A lease will allow your organisation to use a designated piece of land and/or facilities for a fixed period, usually for a fee. 

Like deeds, lease documents can come in a variety of different formats and may be in the name of your organisation or its trustees. If you have a lease for seven or more years, you may have access to documents via the Land Registry or you may have a document from the freeholder.

Your lease is likely to detail the terms and conditions of your use of the site or facility.

It will probably refer to: 

  • The property name, address and postcode. 
  • The rent you will pay and any rent reviews. 
  • Any specific restrictions or expectations.   
  • Your responsibilities and those of the freeholder. 
  • How long your lease is for and whether you have a break clause (the opportunity for you or the freeholder to terminate the lease before it expires). 
  • A site and boundary map which identifies the area included in the agreement between you and the freeholder. 
  • Phrases like “exclusive possession”, “quiet enjoyment” or “peaceably hold”.
  • “Exclusive possession” means your organisation can use the site to the exclusion of all others, including the freeholder.
  • The other two phrases mean your organisation can use the site without disturbance.
  • If these phrases aren’t included in your document, you may have a different type of agreement such as a licence, so check carefully. 

Some of these points may be in other types of agreements that do not offer security of tenure. 

You've got security, if you hold the freehold

A freehold is when your organisation or its trustees (depending on your legal structure) owns the property or grounds you use outright. You will be listed as the freeholder with the Land Registry or on the deeds if they are unregistered. 

If you own the freehold, you should have a document called a title deed (deed) for the land or building(s) in question. Deeds come in a variety of shapes and forms. Modern documents are often printed but older documents may be typed or even hand-written. 

A deed will name your organisation or its trustees (depending on your legal structure) as the freeholders. It should include a plan of the site with a boundary line to show the area included in your freehold.

 

Two things to check...

1. If your title deed lists your Trustees as the freeholders, then check that they're still alive and involved with your organisation. If not, you'll need to update your documents. 

2. If you've only got a hard copy, then register the deed online too, with the Land Registry. 

 

Signs that you don't have security of tenure

If you don't have a lease or freehold, then you may have an alternative agreement in place to access your facilities.

The following types of agreements do not provide security of tenure: 

 

You've got a usage agreement 

This is an agreement between an organisation and the land’s freeholder or leaseholder, allowing access at specific times and for specific purposes.

This may be a formal written agreement or an informal agreement. It may or may not incur fees and can be easier to terminate than other types of agreement. 

 

You've got a hire agreement

This is an agreement between an organisation and the freeholder or leaseholder to use a facility for an agreed amount of time.

A hire agreement will usually set out the costs of hire and any terms and conditions for the hiring organisation. 

 

You've got a community use agreement (CUA)

This is an agreement that's sometimes arranged between a community organisation and a school or education provider.

It's likely to set out the hours of availability, management arrangements and pricing policies.

You've got a licence

This is an agreement, usually between the freeholder and a community organisation, for the non-exclusive use of land or facilities for a short period of time (usually between 6-12 months).

The freeholder can provide licences to other organisations for the use of the same facility.

Organisations are likely to pay a licence fee, rather than rent. 

 

You're sub-letting the facilities

A sub-lease is an agreement that usually occurs between an organisation that holds the lease for a facility or piece of land, and a third-party organisation(s) that sub-leases all or part of the facility or land from them for a specified period.

Sub-leases often have strict conditions around their use and usually incur fees. 

 

Still not sure?

If you're not sure what type of agreement you have, then ask!

Also have a good look through any official paperwork and speak to your bank or solicitors. 

Alternatively, seek legal advice.