Hassle-free help from the UK's best Commercial Property solicitors.
Transparent pricing, from start to finishGet the support you need, when you need itTrusted lawyers, clear expectations
Transparent pricing, from start to finishGet the support you need, when you need itTrusted lawyers, clear expectations
Amazing experience
After placing an enquiry, I received a call 20 minutes later, and then 2 hours later, I had a solicitor assigned to me. They were absolutely incredible right from the word go - amazing and very prompt with replies, answering all my questions and keeping the process moving. We finally completed today and I am so unbelievably happy. I wouldn’t hesitate to use Lawhive again in the future if needed.
Lily
First class service
I initially made an online enquiry about a tricky conveyancing matter and received an immediate call back. They understood straight away what was needed and gave me a quote that was very reasonable. It was such a pleasure to find someone who was cheerful, professional and completely reassuring as I’d been getting quite anxious about the sale of my house. The service Lawhive has provided is absolutely first class and I cannot recommend them enough.
Charles
Empathetic, professional and efficient
I am an executor, selling my mother's home. I found the assistance I received from Lawhive first rate - empathetic, professional and efficient.
Mark
Great service from Lawhive
We used Lawhive for our conveyancing needs and our solicitor was very helpful, patient and informative. She helped us with our needs with prompt responses and provided a very efficient service.
Kelvin
Great service when you need clarity and calm
Our solicitor was warm, friendly and provided crystal clear communication. A lot of conveyancers assume customers know everything about the process already, so it was really appreciated to hear each stage included in the price given.
Em
Quick and efficient
We used Lawhive for a transfer of property and conveyancing. Our solicitor was so helpful and thorough with the whole process. He responded quickly and efficiently to any questions or requests that we had and explained some of the more complicated issues regarding the process clearly.
Geri
Fantastic service and experience with Lawhive
I had the pleasure of working with Lawhive doing a transfer of equity on a property. Our solicitor’s service was amazing, she responded quickly to any questions or concerns and kept me updated throughout the process. I can strongly recommend her for any conveyancing work that you may need. Fantastic service all round.
Jane
Amazing experience
After placing an enquiry, I received a call 20 minutes later, and then 2 hours later, I had a solicitor assigned to me. They were absolutely incredible right from the word go - amazing and very prompt with replies, answering all my questions and keeping the process moving. We finally completed today and I am so unbelievably happy. I wouldn’t hesitate to use Lawhive again in the future if needed.
Lily
First class service
I initially made an online enquiry about a tricky conveyancing matter and received an immediate call back. They understood straight away what was needed and gave me a quote that was very reasonable. It was such a pleasure to find someone who was cheerful, professional and completely reassuring as I’d been getting quite anxious about the sale of my house. The service Lawhive has provided is absolutely first class and I cannot recommend them enough.
Charles
Empathetic, professional and efficient
I am an executor, selling my mother's home. I found the assistance I received from Lawhive first rate - empathetic, professional and efficient.
Mark
Great service from Lawhive
We used Lawhive for our conveyancing needs and our solicitor was very helpful, patient and informative. She helped us with our needs with prompt responses and provided a very efficient service.
Kelvin
Great service when you need clarity and calm
Our solicitor was warm, friendly and provided crystal clear communication. A lot of conveyancers assume customers know everything about the process already, so it was really appreciated to hear each stage included in the price given.
Em
Quick and efficient
We used Lawhive for a transfer of property and conveyancing. Our solicitor was so helpful and thorough with the whole process. He responded quickly and efficiently to any questions or requests that we had and explained some of the more complicated issues regarding the process clearly.
Geri
Fantastic service and experience with Lawhive
I had the pleasure of working with Lawhive doing a transfer of equity on a property. Our solicitor’s service was amazing, she responded quickly to any questions or concerns and kept me updated throughout the process. I can strongly recommend her for any conveyancing work that you may need. Fantastic service all round.
Jane
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Answer a few questions on our site and instantly speak to a member of our team for a quote or request a callback at a time you choose.
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01 overview
Need a place to do business and have no time to waste? Perhaps you have orders to fill or lenders and investors breathing down your neck? Or you simply need a location to set up a shopfront.
A licence to occupy could be the solution you’ve been searching for that’ll allow you to start doing business and getting orders and sales through the door.
Our network of solicitors is ready to assist you with license to occupy agreements when your business is looking for a short-term property solution as a stopgap while you look to secure longer-term property accommodation.
Get in touch with our Legal Assessment Team for a free case evaluation and quote today.
A licence to occupy is a legal agreement between a property owner (licensor) and an occupier (licensee) that gives the occupier the right to occupy a building for a specified purpose, but not exclusive possession or interest in the land.
The agreements are personal to the parties and the owner of the building can revoke the licence if they choose.
There are two types of licence to occupy, a bare licence and a contractual licence.
Under a bare licence, the licensee is allowed to use the licensor’s property via a verbal agreement. It’s the simplest form of licence granted by a landowner to an individual to access and use their land.
It does not grant the licensee any interest in the land or change the ownership in any way.
A bare licence does not require the licensee to remunerate the landowner.
By granting a bare licence the landowner protects the person using the land from being accused of trespass. As long as the licensee follows the terms of the bare licence they are legally protected from trespass charges.
A bare licence may also be implied when a landowner is aware of trespass on their land but does nothing about it.
A contractual licence to occupy differs from a bare licence in that it is operated as a contractual agreement. Additionally, unlike a bare licence, the occupier of a licence to occupy pays for the privilege.
Similar to a bare licence, but unlike a tenancy, this form of licence does not grant the occupier exclusive possession rights.
In a nutshell, a contractual licence to occupy is a short-term contract where the occupier pays rent, but does not have the same rights and protection as a tenant.
A tenancy agreement unlike a licence to occupy gives the occupier, or tenant in this case, exclusive possession of a property. Under a licence to occupy the landowner has the right to use the land and property at the same time as the occupier if they choose.
Typically, tenants have exclusive possession of a property unless they have a live-in landlord. When a tenant lives with a resident landlord this must be at the landlord’s permanent residence.
Tenants have more responsibilities and are also granted greater rights than occupiers under a licence to occupy.
Their responsibilities include paying rent in full and on time. Whereas only those under a contractual licence out of the wider spectrum of licences to occupy are bound by this.
Tenants’ rights include the right to quiet enjoyment, privacy and well-maintained property. Tenants can be evicted when they don’t follow the terms of their lease, however, they have protection from unfair eviction.
Protection from eviction means most tenants need a court order to be protected, this is not the case for many under a licence to occupy.
Licences to occupy are intended to be short-term arrangements. In practice, they commonly last for 6 or 12 months.
They are typically used as a stopgap for a business that needs a base of operation while they are looking for the ideal premises, or in negotiation for a lease.
A licence can be as long as each party agrees to. However, when businesses need somewhere to base themselves for a longer period, they should consider taking out a lease on the temporary property they’re occupying if it is suitable for their needs.
Occupying a property under the limited rights of a licence to occupy can end up causing problems over the long term.
There are various benefits to a licence to occupy which result from the majority of these arrangements not being formal contracts:
On the other hand, there are drawbacks to these arrangements:
Before signing a licence to occupy agreement you should consider the following:
If you are considering entering into a licence to occupy, it's wise to get legal advice to understand what the agreement may mean for you.
Get in touch with our Legal Assessment Team for a free case evaluation and quote today.
A tenant can grant a licence to occupy if this is allowed in the terms of their lease. Most leases however grant exclusive possession which means you wouldn’t be able to share the lease with an occupier by subletting space to them.
A landlord may allow this if you approach them with a request, however you would need their written consent.
There are no legal requirements for ending a licence to occupy arrangement. However, most licences include an explanation of the circumstances in which a licence can be ended, these must be followed to the letter.
Commonly a licence is ended when it is triggered by a written notice that gives the occupier several days or weeks to prepare to leave.
This is an area where licences to occupy fall down compared to leases in terms of protection.
Leases have specific requirements when it comes to deposit protection, however, there is no obligation to extend a deposit protection scheme to occupiers.
The cost for a licensed solicitor to help with a licence to occupy is dependent on many factors including the complexity and specific requirements of the case.
On average it is expected to range from £250-£300, but in some cases, it could cost as much as £500.
A licence to occupy can be converted to a tenancy agreement by the courts when they have been in place for a long time or has been purposefully misused and extended beyond the usual length of a licence – 6-12 months.
If the courts grant a tenancy the occupier turned tenant will have greater protections from eviction.
Under a licence to occupy the occupier can only use the property for specific, limited activities. These will be set out in the agreement.
If the agreement is breached in this regard the landowner can cancel the licence at short notice.
If the licensor, the person that grants the licence to occupy the agreement, breaches its terms the licence may be terminated.
If a licensor gives exclusive possession to an occupier against the terms of the licence in practice, they may unintentionally convert it into a formal lease. Licensors should be cautious about these circumstances if they don’t want to create a lease unintentionally under the Landlord and Tenant Act 1954.
When a lease is created tenants have the right to extend the lease and enjoy protections from eviction.
A property owner may turn a licence into a lease without meaning to when they sell their property.
This would cause a breach of contract and they may be pursued by the new tenant or new landowner through the courts as a consequence.
At Lawhive our network of commercial property solicitors can support you in creating a licence to occupy.
Which type of licence to occupy may be suitable for you depending on your circumstances which we can advise you on.
If you’re looking to enter into or grant a licence to occupy we’d always recommend you seek legal advice first.
Get in touch with us today for a free case assessment and we’ll discuss your case with you.
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