Should your charger site use a lease or a licence?

Choose the arrangement by the rights it actually grants, not its title. Exclusive possession is central to the lease distinction [S1]. In England and Wales, new leases exceeding 7 years normally require registration [S2]. Ask your solicitor to check the land plan, renewal position and exit provisions before signing. Checked October 2026.

Last checked 17 October 2026

What is the difference between a lease and a licence?

A lease gives rights over land; a licence permits a particular use. HMRC’s general-law explanation identifies exclusive possession of a defined area for a term as central to a lease. It also says the substance of the arrangement matters more than its label [S1]. A document headed licence therefore needs the same careful review as one headed lease.

For a charger site, start with the land plan. Ask who can control the marked bays, equipment enclosure and access routes. Can the operator exclude other users? Can you move the equipment or use the land for another purpose? Give the solicitor the actual operating proposal, including parking enforcement and delivery access.

This guide uses England and Wales registration guidance. Scottish leases and servitudes have different legal features [S5]. For a Scottish or Northern Irish site, ask a local property solicitor to confirm the appropriate documents and registration route. This is general information, not legal advice.

Which arrangement fits your charging proposal?

Choose rights that match the project you want to host. Do not select a licence simply because the name sounds less restrictive. HMRC’s substance-over-label explanation is the starting point for legal review [S1]. The following table sets out proposed negotiating questions, not standard terms you can assume will be offered.

Your practical requirement Question to put in the heads of terms
Keep access for deliveries Which access routes remain shared and unobstructed?
Redevelop the car park later Is there a workable break or relocation process?
Protect equipment investment Which bays and service routes are secured for the term?
Retain control of opening hours Who decides when drivers can enter?
Add chargers or solar later How narrowly is any exclusivity clause drawn?
Sell or refinance your property What consent, assignment and title steps are needed?

The funding model is a separate decision. With fully funded charging, the provider funds, owns and operates equipment and you receive an agreed share. Part funded involves your capital contribution. Self funded means you buy the installation. None of those labels answers every land-control question. Compare the proposal with the host agreement guide.

When must a charger site lease be registered?

HM Land Registry says new leases exceeding seven years normally need registration in England and Wales. Its guidance also covers exceptions and special cases [S2]. Ask your solicitor to identify the trigger that applies to your grant, rather than shortening a draft term without understanding the consequences.

Request a cost breakdown covering legal work, title investigation, plan preparation and registration. We have not verified a standard charger-site legal fee. Ask who pays if the project stops after the title review, and whether any contribution is capped. Put the answer in writing before instructing the work.

Give your solicitor the title information and any existing lease. If you occupy rather than own the site, ask them to check your ability to grant the proposed rights. Align the charging arrangement with your own occupation period; do not offer access beyond what your interest allows without the necessary parties joining.

Use a drawing that shows the installation beyond the visible chargers. Mark the cable route, electrical equipment, drainage interfaces, excavation area and access for future maintenance. Ask the installer which parts will remain private assets and which will belong to the distribution network operator, or DNO, the local electricity network company. DfT identifies land permissions as a connection-delivery issue [S4].

Take the same plan to the landlord, lender and legal advisers as applicable. Request confirmation of who must approve the works and the proposed occupation. A landlord’s approval of a drawing should not be treated as proof that every other permission is complete. Have your solicitor identify the actual documents required.

For a route crossing someone else’s land, see wayleaves and easements. Agree who obtains those rights and what happens if negotiations fail before you accept an installation timetable.

Ask the drafter to list every payment route: rent, revenue share, electricity reimbursement, estate service charges and legal expenses. Then ask whether any cost can appear twice. For a multi-let property, compare the proposed charger arrangement with the existing tenant documents rather than assuming a new agreement rewrites them. Check with your solicitor before committing another occupier to costs.

Keep a schedule of unresolved commercial points. Include rates responsibility, insurance, parking enforcement, lost bays during construction and reinstatement. These are issues for the proposal, not published market prices. See multi-let service charges for a way to separate driver energy from estate costs.

How can you protect renewal and exit choices?

Ask your solicitor to explain the renewal position before signature. GOV.UK notes that many business tenants can renew, while some arrangements lack that right [S3]. Request a written explanation of what happens at expiry and which notices or procedures your agreement requires. A date printed on the front page is not an exit plan.

Negotiate the desired outcomes explicitly: renewal, purchase, relocation or removal. Identify who makes the site safe, who retains useful ducting and who repairs the surface. Check whether a change of operator needs consent. Do not rely on an informal statement that these details can be settled later.

What should you do next?

Prepare the title information, bay plan and your intended property timetable. Read how we work, then get matched with an installer that covers your area to develop a proposal for your solicitor to review. State early if sale, refinancing or redevelopment is planned.

Piggy Pineapple Ltd operates this referral service. We refer enquiries to installer partners and may be paid a fee. Our owner holds shares in at least one partner. Before sharing details, we name the proposed partner and explain whether our owner holds shares in it.

Common questions

Is paying rent essential for an arrangement to be a lease?

HMRC's explanation says rent is usual but is not essential. Exclusive possession for a term under an enforceable agreement can be sufficient. Ask your solicitor to classify your actual arrangement [S1].

Does a short agreement avoid every registration issue?

No. Land Registry guidance includes special cases, including leases taking effect in possession more than three months after grant. Have your solicitor check the start date as well as the length [S2].

Are Scotland's land rights the same as England's?

No. HMRC notes different requirements for Scottish leases and a more limited meaning for licences. Servitudes broadly correspond to easements. Use a solicitor practising in the site's jurisdiction [S5].

Will you automatically recover the bays at the stated end date?

Do not assume so. GOV.UK explains that many business tenants have renewal rights, with exceptions. Ask your solicitor to establish whether those rights apply or were validly excluded [S3].

Does the operator's site agreement secure the network's cable rights?

Check separately. DfT describes wayleaves and leases as distinct land-rights issues in grid connections. Ask for a plan identifying the network apparatus and the party securing each permission [S4].

What should a tenant provide when asking for installation consent?

Prepare a scope of works showing bays, cables, excavation and access. DfT identifies landowner permissions as part of connection delivery; have your solicitor check the superior lease before granting rights [S4].

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Sources

  1. IHTM24074 - Definition of a lease as opposed to a licence, HM Revenue and Customs,Last checked 17 October 2026
  2. Practice guide 25 - Leases, when to register, HM Land Registry,Last checked 17 October 2026
  3. Renewing your commercial property lease, GOV.UK,Last checked 17 October 2026
  4. Improving the grid connection process for EV charging infrastructure, Department for Transport,Last checked 17 October 2026
  5. CG70250 - Land interests, HM Revenue and Customs,Last checked 17 October 2026
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