Licence to Occupy

A flexible licence for desk, studio, storage, treatment-room or occasional space in business premises – with guidance on keeping it a licence, not a tenancy.

Editable Word document
12
10pages
Guidance notes included
aml consultancy solutions

Landlord & property

Licence to Occupy

About this document

What it’s for

A licence gives someone personal permission to use space in your premises without creating a lease. Properly drafted and operated, it can be ended on short notice and does not give the occupier the statutory right to renew that business tenants have under the Landlord and Tenant Act 1954.

When to use it

  • Desk or hot-desk space, a shared studio, workshop bench or treatment room
  • Space used on set days or times only (e.g. a therapist using a room on Tuesdays)
  • Storage, a kiosk, a pitch or a stand within your premises
  • Not for residential use – see the Lodger Agreement in this pack

What’s inside

The document is laid out in the sections below. Each one comes with a plain-English guidance note explaining what it does and what to change.

  1. Definitions and interpretation
  2. Permission to use the Licensed Area
  3. Nature of this licence
  4. Licence fee and other payments
  5. Deposit
  6. The Licensor’s obligations
  7. The Licensee’s obligations
  8. Health, safety and fire
  9. Insurance
  10. Liability
  11. Ending this licence
  12. At the end of the Licence Period
  13. Confidentiality and data protection
  14. Notices
  15. General
  16. Governing law and jurisdiction

Also included

  • Schedule 3 – House rules

How to complete it

  • Complete the Particulars in Schedule 1 and the space plan in Schedule 2
  • Set the licence fee, deposit and notice period
  • Adapt the house rules in Schedule 3 to your premises
  • Check your own lease or mortgage allows you to grant licences

Key points to check

  • Calling it a “licence” is not enough – the arrangement must work as one in practice
  • Do not give exclusive possession of a defined area for a term at a rent
  • Check VAT and business rates before setting the fee

Our templates are professionally structured starting points for UK businesses, not legal advice. For anything complex, unusual or high-value, have your final version checked by a solicitor.

Included in the pack

Landlord & property

£20

for every document in this category

Editable Microsoft Word files

Guidance notes in every document

Written for UK businesses

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