Licence to occupy property on short term basis

by Practical Law Property

A standard document for creating a short term licence to occupy commercial property in England and Wales. This standard document provides a framework for a property owner (the Licensor) to grant another party (the Licensee) personal permission to use business premises without granting exclusive possession. A key objective of this standard document is to establish a contractual licence and avoid creating a tenancy, which could grant the occupier statutory security of tenure under the Landlord and Tenant Act 1954 (LTA 1954). This document outlines the fundamental rights and obligations of both parties, addressing the licence fee, permitted use, termination rights, and liability. The agreement is drafted to reinforce its status as a licence, for example, by acknowledging that the Licensor retains control and possession of the property. This standard document is essential for parties seeking a flexible, short term occupation arrangement for commercial premises while understanding the legal distinction between a licence and a lease.