A Guide to Our Licence To Occupy

by Kate Mccormick - Solicitor

Our guide to ur licence to occupy will let you know everything you need to fill out our downloadable document and provide you with step by step instructions on how to do so.

A Guide to Our Licence to Occupy

This Licence to Occupy grants a fixed, short term right to a third party to occupy commercial premises.

Clauses in this Licence to Occupy

Cover page - you will need to insert the names of party 1 (the Owner), party 2 (the Licensee), and party 3 (the Guarantor, if there is one).

Between – this clause defines whom the Licence is granted by and to. You need to insert the details of all parties to the Agreement here including their business/company name and registered number (if any party is a registered company) and registered office or trading address.

Interpretation – here you will need to insert details of the Licence Fee, the address of the property, how the Licensee may use the premises and the permitted hours that the Licensee may use them.

Obligations – this clause sets out the main terms of the Licence. You will need to fill in the details in square brackets. Normally the Licence Fee is defined as being exclusive of VAT but this will depend on whether or not the Owner is VAT registered. Normally the Licence fee is defined as being exclusive of VAT and the Licensee agrees in this clause to pay the Rent ‘inclusive’ of any VAT that may be chargeable on it.

Terms – this clause ensures that the Property remains under the control of the Owner at all times.

General Agreement – this clause also sets out the Tenant’s obligations in respect of the property and tenancy. The Licence can be terminated on the giving of reasonable notice by the Owner at any time. This is defined in clause 5.2 as one month’s notice but this can be changed to a different period.

Agreement – this clause contains the Owner’s obligations to ensure that the property is supplied with gas/electricity/water etc (although the Owner may charge the Licensee for their usage). It also permits the Owner to terminate the Licence if the Licensee causes damage to the Property that renders the Property unfit for use for 48 hours or longer. Any disputes arising between the parties are to be referred to arbitration, although the Owner may decide instead to simply terminate the Licence.

Jurisdiction – If any of the parties are based abroad, you may wish to change the jurisdiction clause to reflect this and/or make it non-exclusive. Where all parties are based in the UK, the jurisdiction should be exclusively that of England and Wales.

Signature Clause – you need to insert the names of all parties and the officers signing on their behalf. All parties need to sign the Licence here. Once all parties have signed the Licence it should be dated on the Cover Page and also at the top of Page 1. This is the date that the Licence will commence. All parties should keep a copy of the signed Licence.