Licence To Occupy for the United Kingdom

Licence To Occupy Template for England and Wales

A Licence to Occupy is a legal document governed by English and Welsh law that grants permission to occupy and use a property or space without creating a landlord-tenant relationship or conferring any property rights. It differs from a lease as it doesn't grant exclusive possession and can typically be terminated with shorter notice. The document outlines the terms of occupation, including duration, permitted use, fees, and obligations of both parties.

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What is a Licence To Occupy?

A Licence To Occupy is commonly used in England and Wales when property owners want to grant temporary occupation rights without creating a formal tenancy. It's particularly useful for flexible arrangements such as pop-up shops, office hotdesking, or temporary accommodation. The document typically includes terms of use, duration, fees, termination provisions, and both parties' obligations. Unlike a lease, it doesn't create an interest in land and generally offers less security for the occupier.

What sections should be included in a Licence To Occupy?

1. Parties: Details of licensor and licensee

2. Background: Context and purpose of the license

3. Definitions: Key terms used throughout the agreement

4. Grant of Licence: Terms of permitted occupation and usage

5. Duration: Term of licence and termination provisions

6. Licence Fee: Payment terms and amounts

7. Licensee Obligations: Responsibilities and restrictions on licensee

8. Licensor Obligations: Responsibilities of the licensor

What sections are optional to include in a Licence To Occupy?

1. Service Provisions: Details of additional services provided, used when licensor provides services

2. Insurance Requirements: Specific insurance obligations, used for commercial licenses

3. Shared Facilities: Rules for common areas, used in shared occupation situations

What schedules should be included in a Licence To Occupy?

1. Schedule 1: Property Description: Detailed description of licensed area including plans

2. Schedule 2: Inventory: List of furniture and equipment included

3. Schedule 3: House Rules: Specific regulations for occupation and use

4. Schedule 4: Service Charges: Breakdown of any additional charges and services

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Genie AI

Document Type

Lien Notice

Cost

Free to use
Industries

Law of Property Act 1925: Fundamental legislation that distinguishes between leases and licenses, and defines various property rights and interests. Critical for establishing the correct legal framework for a license to occupy.

Landlord and Tenant Act 1954: Must be explicitly excluded to prevent creating security of tenure, as licenses should not grant the same rights as tenancies. Important for maintaining the distinction between licenses and leases.

Housing Act 1988: Needs consideration to ensure the agreement doesn't inadvertently create an assured shorthold tenancy instead of a license to occupy.

Protection from Eviction Act 1977: Governs notice requirements and eviction procedures, while also providing protection for occupiers against harassment and illegal eviction.

Consumer Rights Act 2015: Applicable when the licensee is a consumer, requiring all terms to be fair and transparent in the agreement.

Occupiers' Liability Acts 1957 and 1984: Establishes the duty of care owed to both occupiers and visitors to the property.

Regulatory Reform (Fire Safety) Order 2005: Sets out fire safety obligations that must be complied with in the property.

Housing Act 2004: Establishes health and safety standards including the Housing Health and Safety Rating System (HHSRS) that must be maintained.

Data Protection Act 2018 and UK GDPR: Governs the handling and protection of occupier's personal data during the license period.

Equality Act 2010: Ensures prevention of discrimination in property occupation and sets out protected characteristics that must be respected.

Common Law Principles: Relevant case law regarding distinction between licenses and leases, exclusive possession, contractual formation, and quiet enjoyment rights.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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