Licence agreements
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A licence agreement is a legal arrangement that grants permission for the use of property, land, or intellectual property for a specific purpose.
Unlike leases, licence agreements typically don’t offer exclusive rights or long-term interest in the property. Whether you’re granting temporary access to property or seeking to use another’s, it’s essential to fully understand the terms and scope of the licence to prevent potential disputes.
These agreements are often used for short-term arrangements or shared spaces, offering flexibility in various commercial and property scenarios.
What is a licence to occupy?
A licence to occupy is a contract where one party, the licensor, allows another, the licensee, to use property or land for a specific purpose. It differs from a lease in that the licensor retains control of the property, and the licensee does not have exclusive possession. Licence agreements are commonly used for temporary or shared property use, like granting access to shared office spaces, allowing temporary land use, or for business agreements involving intellectual property.

Richard Hughes
Partner | Commercial Property, Real Estate, Real Estate Finance
What are the types of licence agreements?
There are various types of licence agreements commonly used in property and business contexts, including:
- Licence to alter: Grants permission to a tenant to make alterations to the property.
- Licence to occupy: Allows temporary occupation of a property without granting exclusive possession.
- Licence to underlet: Permits a tenant to sublet the property or part of it to another party.
- Licence to assign: Authorises a tenant to transfer their leasehold interest to a new tenant.
- Licence for works: Gives a tenant permission to carry out specific works or improvements on the property.
Other types may include licence for access, allowing temporary use of property for particular access purposes, or licence to park, granting permission to use parking facilities. These agreements are typically flexible and temporary in nature.
How we can help you
Our law firm offers expert commercial property licence services to assist with a variety of property-related agreements. Whether you need a licence to occupy, licence to alter, licence to assign, or any other form of commercial licence, our experienced solicitors will guide you through the process.
We provide tailored legal guidance on drafting, reviewing, and negotiating licence agreements to ensure both parties’ rights and obligations are clearly established. Whether you’re issuing a licence or entering into one, we work to ensure the agreement is fair, legally compliant, and reflective of your needs. Our legal team ensures that every aspect is thoroughly considered, reducing potential areas of dispute and ensuring the agreement serves its intended purpose.
We offer comprehensive support for drafting and customising licence agreements, advising on responsibilities, negotiating clear terms, and reviewing existing agreements to ensure compliance with legal standards.
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Why choose us
Our expertise in property and commercial law ensures that every detail of your licence agreement is carefully considered and legally enforceable. We approach each agreement with thoroughness, aiming to minimise risk and ensure both parties understand their rights and responsibilities. With our experience, you can be confident that your licence agreement will be well-structured and aligned with your business objectives.
We focus on practical, clear advice to ensure that licensors and licensees fully understand the terms, helping you avoid common legal pitfalls and structure agreements that work in your favour.
Who we help
We assist a wide range of clients, including property owners granting temporary access, businesses navigating intellectual property agreements, and tenants who need flexible arrangements for shared or short-term property use. Our legal expertise covers multiple sectors, allowing us to provide specialised advice tailored to the specific needs of commercial and property clients.
Full list of licences
Our experience extends to a broad variety of licence agreements. These include:
- Licences for temporary occupation of property
- Agreements for alterations or modifications to leased properties
- Licences for assigning leases to third parties
- Those granting permission for construction or development on property
- Intellectual property agreements
- Access licences for specific purposes, such as temporary entry for events or utility work
Contact us
If you’re considering a licence agreement or need advice on an existing one, we are here to assist. Our experienced team provides clear, expert guidance to help you navigate the complexities of licence agreements, ensuring your rights are protected and the terms of the agreement are fair. Contact us today to discuss your legal needs and find out how we can help you with your licence arrangements.
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FAQs – Licence agreements
Is a licence agreement the same as a lease?
No, a licence agreement is not the same as a lease. A licence is a personal agreement that grants permission to use a property usually without giving the user exclusive possession. If the landlord were to sell the property to a third party, then the licence would terminate because it is a personal contract between the individuals as opposed to a lease that would continue to bind future owners. A lease, on the other hand, provides the tenant with exclusive possession of the property for a fixed term, offering more legal protection.
How long can a licence agreement last?
A licence agreement can last for any length of time, depending on what the parties agree to. There is no set maximum or minimum duration, however in the case of a licence to occupy it is best to keep the licence to a duration of less than six months to avoid the occupier potentially accruing formal rights of occupation. Licence agreements are often used for short-term arrangements, ranging from a few weeks to several months, but they can be extended if both parties agree. However, licences are usually for temporary or flexible use of a property, unlike longer-term tenancy agreements.
Can a licence agreement be terminated?
Yes, depending on the terms, a licence agreement can be terminated, often with greater flexibility than a tenancy agreement. The terms of termination are usually outlined in the licence itself, allowing either party to end the agreement by giving notice, often on short notice.
In some cases, the licence can be revoked immediately if the conditions of the agreement are breached. Since a licence does not provide the same legal protections as a tenancy, the licensor (landlord) generally has more control over termination.
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