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🏢 Parties to the License

Optional - Find at Companies House

📍 Property Details

Full address of the property being licensed
? Be specific about what's included - office suite, desk space, storage areas, parking, etc. This defines the scope of the license.
? Areas the licensee can use but doesn't have exclusive possession of - e.g., reception, corridors, toilets, lifts.

📅 License Period

When the license period begins
? Fixed term has a set end date. Rolling/periodic renews automatically (e.g., monthly). Fixed term with option to renew provides flexibility.

💷 License Fee & Payment

Monthly or periodic fee amount
E.g., "1st of each month", "Every Monday"
E.g., Bank transfer, Standing order, Cheque
? A refundable deposit (typically 1-2 months' fee) protects against damage or unpaid fees. Must be protected in a deposit protection scheme for residential, but not required for pure commercial licenses.
Typically equivalent to 1-2 months' license fee
? Commercial property rent/license fees may be subject to VAT (currently 20%) if the licensor has opted to tax. Residential property is usually exempt.
? For longer agreements, consider how fees will increase. Common options: annual RPI/CPI increase, or open market review.

🔧 Services & Utilities

? List what's included in the license fee - utilities, internet, cleaning, security, building insurance, etc. Be specific to avoid disputes.
? Any services or utilities the licensee pays directly for - e.g., telephone, excess electricity, business rates, contents insurance.
? Business rates are usually the occupier's responsibility. For small licenses within larger premises, the licensor may include them in the fee. For separate units, licensee typically pays directly to local council.

📋 Permitted Use

? Clearly define what business activities are allowed. This must align with planning permission and any head lease restrictions. Be specific but not overly restrictive.
Be specific about allowed business activities
? List activities that are NOT allowed - e.g., residential use, food preparation, retail, manufacturing, anything noisy/hazardous.
Maximum number of people who can occupy the premises

Licensee Obligations

? Any additional responsibilities beyond standard obligations - e.g., specific cleaning duties, security procedures, parking rules, sign-in requirements.
? When the licensee can access the premises. For 24/7 access, state "24 hours per day, 7 days per week". For restricted access, specify permitted hours.
? Whether licensee can access outside normal hours, and any conditions (e.g., prior notice, additional fee, key holder availability).

🔑 Licensor Rights

? A license (unlike a lease) allows the licensor to retain control. The licensor typically has the right to access for inspections, repairs, and to provide services.
E.g., "24 hours", "48 hours", "Reasonable notice"
? Additional rights the licensor reserves - e.g., to relocate licensee, make alterations to building, use common areas for events, update access systems.

🛡️ Insurance & Liability

? The licensor typically maintains building insurance. This covers the structure, fixtures, and common areas but NOT the licensee's contents or business.
? The licensee should insure their own contents, equipment, and stock. Requiring minimum public liability insurance (typically £2-5 million) protects both parties.
Typical: £2,000,000 minimum

🚪 Termination

? How much notice the licensee must give to terminate. Common periods: 1-3 months for longer agreements, 1 week to 1 month for short-term or rolling licenses.
? How much notice the licensor must give. Typically the same as licensee notice, but can be shorter for true licenses (where licensor retains control and can relocate/terminate more easily).
? Circumstances where the licensor can terminate immediately without notice - serious breaches like non-payment, illegal use, damage, insolvency, or material breach of terms.

📄 Additional Terms

? Any other specific terms relevant to this license - e.g., restrictions on signage, rules about receiving deliveries, parking allocation, use of facilities.

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