Licence to Occupy
Our best-selling Licence to Occupy template:
- Over 200 sold
- Drafted by a UK lawyer for reliability
- Covers any type of business premises
- Easy to edit with guidance notes
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How Does It Work?
If you are letting commercial property in England or Wales, use our best-selling licence to occupy template to put in place a short-term agreement that provides a right to occupy. Now over 200 sold!
For residential property, please use the residential licence agreement, which is a variation of this agreement.
Our template agreement is drafted in clear plain English and comes with full guidance notes to ensure it is easy for you to complete.
It can be completed within 15 minutes and edited to cover all or part of any type of commercial premises.
When to use a Licence to Occupy for business premises
This agreement is meant to be a fairly short and simple contract and so is best suited for short term lets of up to to twelve months ideally, but it can cover a longer period if you want to maintain a flexible arrangement with your tenant.
In a licence to occupy you are not offering exclusive rights of occupation to the licensee. That means that you as the landlord can enter or use the property at any time.
This type of contract is ideally suited to the situation where the landlord will use the premises jointly with the licensee or the licensee will use part of the landlord’s premises. For example, the licensee can be given permission to use part of the larger area used by the landlord, with a designated area for the licensee and some areas of joint use.
The length of the licence is generally kept flexible, with it rolling on from month-to-month, but capable of being terminated with notice. Notice periods are generally kept short, but you can set them to what you agree with your licensee.
If you want to put in place an agreement that provides exclusive occupation for the tenant, then you should use a Tenancy at Will, if you still want to keep the agreement short and flexible. A key difference is that with that agreement, you as the landlord would not have the right also to use the premises or enter them at any time without prior agreement.
As regards the term of the licence, if, in reality, the licensee occupies the property exclusively or you agree a fixed period exceeding six months, the licensee could claim it has a “tenancy”, which is protected by the Landlord and Tenant Act 1954. In certain circumstances a right to renew can be claimed under that legislation.
A licence agreement or a Tenancy at Will both suit short term and flexible lettings, but when letting your property for more than 12 to 24 months, or if you want to let it for a fixed period of time longer than 6 months, consider a commercial lease agreement.
If the arrangement is intended to be longer-term, a more detailed legal agreement might be more suitable. It will also tackle this issue of contracting out of the right to renew the lease on expiry. Legalo offers a commercial lease template for this purpose.
You can view the first page as sample of the document by clicking the preview button above.
Using our Licence to Occupy template
Drafted by David, our co-founder and lawyer of over 20 years, you can rely on this template being both up-to-date and well drafted. The download of this template includes full guidance notes which take you through drafting the agreement clause by clause.
Our template is downloaded in Word format along with the supporting guidance notes. View a summary of the licence to occupy guidance notes to familiarise yourself with the main clauses.
Once downloaded you can easily edit and customise the template to your requirements.
If you are the tenant, do bear in mind that occupying under a licence to occupy offers minimal protection in terms of your security of tenure (your rights to remain on the property long-term or apply for a renewal of the term). An alternative is the tenancy at will template or for a longer-term lease (one year or more) the business lease template would be the better option.
If you would like to see our other commercial property templates click on the link.