Commercial Property & Leases›Licences to Occupy
Licence to OccupyOccupy premises without a full lease.
Sometimes a business needs to occupy premises without entering into a formal lease — temporary space, occupation during lease negotiations, or short-term use. A Licence to Occupy can provide the arrangement, and choosing the correct legal document matters.
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The right document
for temporary occupation.
Permission to use premises, on agreed terms
A Licence to Occupy is a legal agreement that gives a person or business permission to occupy or use commercial premises under agreed terms, without necessarily creating a lease or granting exclusive possession of the property.
Unlike a commercial lease, a Licence to Occupy is generally intended to provide permission to use premises without creating the broader legal rights that may arise under a lease. Importantly, whether a document is legally a licence or a lease will depend on its terms and the practical arrangements between the parties, not simply the title of the document. For this reason, obtaining advice before entering into an agreement is important.
A Licence to Occupy may be suitable for temporary occupation, short-term office space, occupation while lease negotiations continue, shared office facilities, occupation of part of a commercial building, temporary business projects, pop-up retail opportunities and short-term storage or operational space.
Flexibility, simplicity and certainty
Where a long-term lease is not appropriate, a Licence to Occupy can provide flexibility for a temporary or specific purpose, and in appropriate circumstances may be a more straightforward arrangement than negotiating a full lease. Recording the agreement in writing helps reduce the risk of misunderstandings. A well-drafted licence will usually deal with:
- Description of the premises. Clearly identifying the area that may be occupied.
- Period of occupation. The agreed start date and the intended duration of the licence.
- Payment arrangements. Details of any licence fee or other payments that may be required.
- Permitted use. How the premises may be used during the licence period.
- Access arrangements. The circumstances in which the occupier may use the premises and any restrictions that apply.
- Responsibilities of the parties. Clarifying each party's obligations throughout the duration of the agreement.
Before entering into a licence, it is sensible to consider whether a licence is the most appropriate arrangement or whether a commercial lease would be more suitable, how long the occupation will last and what rights each party should have.
The right arrangement, clearly drafted
We advise commercial landlords, tenants and businesses on the preparation and negotiation of Licences to Occupy. We take time to understand the commercial objectives of each client before advising on the most appropriate legal arrangement.
Where a Licence to Occupy is suitable, we prepare clear and practical agreements that accurately reflect the intentions of the parties while helping to minimise future legal risk. Our objective is to provide commercially focused advice that supports businesses while protecting their legal interests.
Advice reflecting your individual needs
- Practical commercial property advice.
- Clear explanations of legal documentation.
- Commercially focused legal solutions.
- Advice tailored to each client's objectives.
- Professional communication throughout your matter.
- Efficient preparation and negotiation of agreements.
We appreciate that every commercial arrangement is different and provide advice that reflects the individual needs of each client.
Licences to Occupy, answered
What is the difference between a Licence to Occupy and a commercial lease?
Although both allow occupation of commercial premises, they create different legal rights and obligations. Determining which arrangement is appropriate depends on the circumstances and the intentions of the parties.
Is a Licence to Occupy suitable for long-term occupation?
It depends on the circumstances. Long-term occupation may require a different legal arrangement. Advice should be obtained before deciding which agreement is appropriate.
Can Jefferson Clarke prepare a Licence to Occupy?
Yes. We advise on, draft and negotiate Licences to Occupy for commercial landlords and businesses.
Do you advise both landlords and occupiers?
Yes. We act for both commercial landlords and businesses seeking to occupy commercial premises under licence arrangements.
Why should I obtain legal advice?
Choosing the wrong legal document can have significant legal consequences. Taking advice before entering into an agreement can help ensure the arrangement accurately reflects the parties' intentions.
Need a short-term occupation arrangement? We'll put it in writing.
Whether you are granting permission for a business to occupy commercial premises or require advice before entering into a Licence to Occupy, we can provide practical guidance tailored to your circumstances. Contact us today to arrange an initial consultation and discuss your requirements.
Prefer email? Write to info@jeffersonclarke.co.uk