£15UK law · England & Wales

UK Licence to Occupy Template

A Licence to Occupy for non-exclusive commercial occupation of UK premises — shared offices, pop-ups, serviced space, short-term arrangements. Drafted to avoid creating a tenancy or 1954 Act security of tenure. £15.

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Legal background

A licence to occupy is a personal permission to use premises, not a property right. Done right, it does NOT confer exclusive possession (Street v Mountford [1985]) and therefore does not create a tenancy. This avoids the security of tenure regime under Part II of the Landlord and Tenant Act 1954, which would otherwise give a business tenant a statutory right to renew. Critical for flexible commercial arrangements.

Sample excerpt

A short preview of the kind of clauses your generated document will contain. The full document is tailored to your inputs.

1. Licence. The Licensor grants the Licensee personal permission to occupy the area shown in Schedule 1 (the "Premises") for the Permitted Use only, on a non-exclusive basis. This is a licence and not a tenancy or any other interest in land. 2. No exclusive possession. The Licensor retains the right to enter the Premises at any time, to require the Licensee to relocate within the building on reasonable notice, and to use the Premises for any purpose not inconsistent with the Permitted Use. 3. Term. The licence begins on [Start Date] and continues until terminated under clause 6. 4. Licence fee. The Licensee shall pay £[Fee] per [period] in advance on the [Date] of each [period]. 5. Permitted use. The Permitted Use is [description]. The Licensee shall not use the Premises for any other purpose, residential occupation, or any unlawful activity. 6. Termination. Either party may terminate this licence on [Notice] days' written notice. The Licensor may terminate immediately for material breach by the Licensee. 7. Exclusion of security of tenure. The parties acknowledge that this is a licence and confirm their intention that no security of tenure under Part II of the Landlord and Tenant Act 1954 arises.

What's in the template

✓No exclusive possession — clear non-tenancy framing
✓Personal permission (not assignable)
✓Defined permitted use of the premises
✓Term: fixed or rolling, with mutual termination right
✓Licence fee, frequency and review (if any)
✓Shared facilities and house rules
✓Insurance allocation
✓No security of tenure — explicit 1954 Act exclusion language
✓Termination on notice or for breach

Who this is for

→Coworking and serviced office providers
→Landlords offering pop-up or meanwhile space
→Companies sub-letting desks or rooms in their own premises
→Operators of shared studios, kitchens and workshops

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Frequently asked questions

How do I make sure this is a licence, not a tenancy?

The substance of the arrangement matters, not just the label. The licensee must NOT have exclusive possession. You retain the right to enter, can move them within the premises, and the rights are personal (not assignable). The template enforces this; you also need to operate it consistently.

Does the 1954 Act apply?

No — a true licence falls outside Part II of the Landlord and Tenant Act 1954, so the licensee has no statutory right to renew. This is the headline benefit of a licence over a lease.

Can I licence residential premises?

Generally no — residential occupation of self-contained dwellings is almost always a tenancy or excluded license under the Protection from Eviction Act 1977. This template is for commercial use.

These templates are general legal information, not bespoke legal advice. For high-value or unusual matters, ask a solicitor to review.