Licence to occupy
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Contact our teamA licence to occupy offers a flexible arrangement that allows someone to temporarily use a property without the legal protections and long-term obligations associated with a lease.
This type of agreement is particularly suited to scenarios where the occupier does not require exclusive possession or long-term security, such as short-term office use, pop-up shops, or event spaces. The agreement is often used when both the landlord and the occupier are seeking flexibility, as it is easier to terminate than a lease and can be tailored to suit specific circumstances.
A licence to occupy is different from a lease in that it doesn’t provide exclusive possession of the property. This means that the property owner retains access and control, while the occupier gains the right to use the space for a specific purpose or time. It’s an arrangement that works well when the use is temporary and the occupier does not require full control over the premises.
Richard Hughes
Partner | Commercial Property, Real Estate, Real Estate Finance
What is a licence to occupy and key features
A licence to occupy is a legal agreement that grants temporary permission to an individual or business to use a property without providing the same rights as a formal lease. This arrangement is particularly beneficial for short-term use where exclusive possession of the space is not required. Unlike a lease, which comes with significant legal protections and obligations, a licence to occupy offers greater flexibility, allowing for easier negotiation and termination. It clearly outlines the terms under which the property can be used, including the duration, permitted activities, and any responsibilities regarding maintenance or insurance. The property owner retains the right to access the space and may even allow others to use it simultaneously, making the licence a practical solution for shared or temporary occupancy.
Typically, a licence to occupy is used for short-term purposes and does not grant the same legal security as a lease. The rent is not regulated by law, and the occupier (licensee) does not hold exclusive possession or security of tenure, meaning they must vacate once the licence period ends. Additionally, the licence is personal to the licensee and cannot be transferred or inherited. These licences are especially useful for businesses that need a flexible space while negotiating a long-term lease or searching for permanent premises. They act as a temporary solution, allowing businesses to operate without the commitment of a full lease agreement.
How we can help
Our legal team specialises in drafting and negotiating licences to occupy, ensuring that the agreement meets the specific needs of both the property owner and the occupier. Whether you are a business looking for temporary space or a property owner who wishes to maintain control while granting short-term access, we can provide expert advice to ensure the arrangement is legally sound.
We work with clients to clarify the terms of the agreement, including how long the property will be used, what the occupier is allowed to do on the premises, and the responsibilities of both parties. Our goal is to create a clear, enforceable licence that minimises the risk of disputes and protects the interests of both parties.
Meet our real estate finance experts
Richard Hughes
Partner | Commercial Property, Real Estate, Real Estate Finance
Jo Farr
Partner | Commercial Property, Real Estate, Land Development, Real Estate Finance
Susannah Marsh
Partner | Financial Services Litigation, Real Estate Finance
Sam Ho
Senior Associate | Commercial Property, Real Estate, Real Estate Finance
Nellie van der Lande
Senior Associate | Commercial Property, Real Estate Finance, Rural Services
Callum Leary
Partner | Commercial Property, Real Estate, Real Estate Finance
Sharon Mays
Senior Associate | Commercial Property, Real Estate, Land Development, Real Estate Finance
Why choose us
At Moore Barlow, we have extensive experience in handling property law matters, including licences to occupy. Our expertise allows us to tailor each licence to the specific circumstances, ensuring that all legal requirements are met and that the agreement is fair and transparent. We understand the need for flexibility, particularly in short-term arrangements, and we work to ensure that the terms of the licence are clear, leaving no room for confusion or future disputes.
We take a practical, client-focused approach, making sure that both the property owner and the occupier fully understand their rights and obligations. Our thoroughness and attention to detail help prevent potential issues, providing peace of mind throughout the process.
Who we help
We assist a wide range of clients, including property owners who wish to grant short-term access to their property without giving up control, as well as businesses and individuals who need temporary or flexible space. Our services span both commercial and residential property sectors, ensuring that we can meet the needs of any client, whether you’re managing a pop-up shop, a temporary office, or a short-term residential rental.
For property owners, we focus on drafting agreements that protect your interests while allowing you to maintain control over your property. For occupiers, we ensure that the terms of the licence give you the necessary flexibility to use the property for your specific needs without the long-term obligations of a lease.
Contact us
If you’re considering a licence to occupy or need advice on your legal rights regarding temporary property use, Moore Barlow’s team of experienced solicitors is here to assist. We provide clear, practical advice to ensure that your licence to occupy is tailored to your needs and fully protects your interests. Contact us today to discuss your requirements and find out how we can help you navigate the legalities of short-term property use.
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FAQs – Licence to occupy
When is a licence to occupy required?
A licence to occupy is required when a tenant needs temporary, flexible use of a property without being granted exclusive possession. It is commonly used for short-term arrangements where both parties want flexibility, such as for pop-up shops or short-term office space.
What is the difference between a lease and a licence to occupy?
Although a document may label itself as a “licence,” if it has the characteristics of a lease, the courts may treat it as such. The distinction between a lease and a licence lies primarily in the right to exclusive possession. If the occupier has the ability to exclude the property owner from the premises, it is likely to be considered a lease, even if described as a licence.
Are there risks in granting a licence to occupy?
Even when parties intend to establish a licence to occupy, there is a risk that the arrangement could be legally interpreted as a lease. This is particularly true if the terms suggest the occupier has exclusive control over the property. Licences are typically short-term and provide limited security, often allowing for termination at short notice.
When is a licence to occupy useful?
A licence to occupy is ideal when flexibility is needed, particularly in properties with multiple users or where short-term arrangements are required. They are commonly used in situations like serviced office spaces, interim arrangements between property sale and completion, or when early access to premises is needed before a formal lease is finalised. These arrangements also work well for store concessions or temporary retail setups.
What is the benefit of a licence to occupy?
A licence to occupy provides flexibility for both the property owner and the occupier. It allows temporary use of a space without the long-term commitments of a lease. Licences are easier to terminate, offer more control for the owner, and suit short-term or interim property arrangements.
How long does a licence to occupy take?
The timeframe for establishing a licence to occupy depends on the complexity of the arrangement. In most cases, it can be set up relatively quickly, often within a few days to a couple of weeks, as it typically involves simpler terms than a formal lease agreement.
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