Licence To Occupy Agreement for the United Kingdom

Licence To Occupy Agreement Template for England and Wales

A Licence to Occupy Agreement 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. Unlike a lease, it doesn't confer exclusive possession or create an interest in land. This agreement typically includes terms regarding duration, permitted use, fees, and obligations of both parties while maintaining the licensor's right to revoke permission under specified conditions.

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What is a Licence To Occupy Agreement?

A Licence To Occupy Agreement is commonly used in England and Wales when temporary or flexible occupation rights are needed without establishing a formal landlord-tenant relationship. This document is particularly useful for short-term arrangements, shared spaces, or situations requiring quick termination rights. The agreement clearly defines the scope of permitted use, duration, fees, and mutual obligations while explicitly avoiding the creation of security of tenure under the Landlord and Tenant Act 1954.

What sections should be included in a Licence To Occupy Agreement?

1. Parties: Details of licensor and licensee

2. Background: Context and purpose of the license

3. Definitions: Key terms used throughout the agreement

4. License Grant: Specific permissions granted and any restrictions

5. Duration: Term of the license and any renewal provisions

6. License Fee: Payment terms and amounts

7. Licensee Obligations: Responsibilities and restrictions on the licensee

8. Licensor Obligations: Responsibilities of the licensor

9. Termination: Circumstances and process for ending the license

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

1. Insurance: Insurance requirements, used when specific coverage is needed

2. Alterations: Rules about changes to premises, used for longer-term occupations

3. Services: Details of provided services, used when additional services are included

4. Security Deposit: Deposit terms, used when security deposit is required

What schedules should be included in a Licence To Occupy Agreement?

1. Schedule 1 - Property Description: Detailed description of licensed premises

2. Schedule 2 - Plan: Floor plan or map of licensed area

3. Schedule 3 - Inventory: List of included fixtures and fittings

4. Schedule 4 - House Rules: Optional schedule detailing specific rules for use of premises

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

License Agreement

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 in land

Landlord and Tenant Act 1954: Must be explicitly excluded to prevent creation of security of tenure, as licenses should not create such rights

Housing Act 1988: Relevant to ensure the agreement is not inadvertently drafted in a way that creates an assured shorthold tenancy

Consumer Rights Act 2015: Requires terms to be fair and transparent when the licensee is a consumer

Occupiers' Liability Act 1957 and 1984: Establishes duty of care obligations towards both lawful visitors and trespassers on the property

Regulatory Reform (Fire Safety) Order 2005: Sets out fire safety obligations and requirements for properties

Health and Safety at Work Act 1974: Applicable when the licensed property is used for business purposes

Data Protection Act 2018 and UK GDPR: Governs the handling and processing of personal information in the agreement

Street v Mountford [1985]: Landmark case law that establishes the key tests for distinguishing between licenses and leases, particularly regarding exclusive possession

Contract Law Principles: Basic principles including offer, acceptance, consideration, and intention to create legal relations must be incorporated

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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