(England & Wales)
Create your commercial property licence with permitted use, duration, licence fee, and termination rights.
Professionally drafted — structured following UK property law for England and Wales.
Download a professionally drafted Commercial Property Licence template for UK property owners. Also known as Licence to Occupy, Property Licence Agreement, Temporary Occupation Licence. Covers occupation rights, fees, duration, and termination. Structured following UK property law for England and Wales.
Whether you prefer step-by-step guidance or a traditional form, both methods produce the identical professionally-formatted property licence. Choose the style that suits you.
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♻️ Unlimited use — generate licences for every occupier at every property
Ideal for granting temporary occupation rights without creating landlord-tenant obligations — perfect for flexible arrangements.
A UK commercial property licence grants permission to occupy premises without creating a tenancy — the key distinction is that a licence does not grant exclusive possession, meaning the licensor retains control of the property and the occupier has no security of tenure.
A commercial property licence grants temporary permission to occupy or use commercial premises without creating a tenancy. Unlike a lease, a licence does not grant exclusive possession — the licensor retains control over the property and can typically terminate the arrangement on short notice.
Licences are ideal for short-term arrangements, shared facilities, pop-up retail, events, concessions, and situations where the property owner needs flexibility to terminate or relocate occupiers quickly.
The distinction between a licence and a lease is critical under UK property law — if a court determines the arrangement is actually a lease, the occupier gains security of tenure under the Landlord and Tenant Act 1954, tenant repair rights, and protection from eviction.
The fundamental distinction is whether the occupier has exclusive possession. If they can exclude everyone (including the landlord) from the premises, it's likely a tenancy regardless of what the document is called.
Calling a document a "licence" doesn't make it one. Courts examine the actual arrangement. If the occupier has exclusive possession and pays rent for a term, it's a tenancy — and they may gain security of tenure, making eviction extremely difficult.
This property licence template covers the licensed premises, permitted use, licence fee, duration, termination provisions, access rights, maintenance obligations, insurance, indemnities, and clear statements preserving the licence status to prevent lease reclassification.
Drafted to maintain genuine licence characteristics and avoid accidental tenancy creation.
Common property licence mistakes include granting exclusive possession (which creates a lease regardless of what the document says), failing to reserve access rights, no termination mechanism, and using lease terminology that courts interpret as creating tenancy rights.
Our template includes proper non-exclusive clauses and licensor reservation of rights.
The fundamental distinction is exclusive possession. Leases grant exclusive possession — the tenant can exclude everyone including the landlord (except for agreed inspections), controls the space, and typically gains security of tenure under the Landlord and Tenant Act 1954. Licences grant mere permission to use property — the licensor retains control, can enter at any time, and can allow others to use the same space. Licensees have no security of tenure and can be removed on short notice.
Use licences for short-term arrangements (under 12 months), shared facilities, temporary use, or when you need flexibility to terminate quickly.
Yes — courts examine substance over form. Calling a document "licence" doesn't make it one if the actual arrangement has tenancy characteristics. Courts will find a tenancy exists if the occupier has exclusive possession, payments are periodic "rent" for occupation, the term is defined, and the licensor doesn't actually exercise reserved rights. The landmark Street v Mountford (1985) case established that exclusive possession + rent + term = tenancy, regardless of labelling.
To prevent accidental tenancies: retain and actually exercise access rights, provide genuine services, reserve relocation rights, use shared facilities, and keep terms short.
Licences work best for co-working spaces (hot-desking, shared offices, meeting rooms), short-term lets under 12 months, serviced offices where the licensor provides reception, cleaning and IT support, pop-up retail and seasonal trading, event spaces, storage facilities, car parking, and concessions such as coffee bars in larger premises. They are not suitable for entire buildings, long-term exclusive spaces, or occupiers needing security for major business investment.
Licences provide flexibility — typical notice periods are 7–28 days for either party. Weekly licences usually require 7 days' notice, monthly licences 14–28 days, and fixed-term licences expire automatically on the end date. Notice periods should be short — long notice (3–6 months) undermines licence flexibility and suggests tenancy characteristics. Unlike leases, licences don't require court proceedings for possession — licensees must vacate upon proper notice.
For straightforward short-term licences (desk space, meeting rooms, storage under 12 months), many complete without one. Our template is based on UK property law and includes all essential clauses. Consider solicitor review for high-value arrangements (£30,000+ annual fees), longer terms (12+ months) risking tenancy characterisation, complex shared facilities, or where you're unsure whether a licence or lease is appropriate. Your choice based on your situation.
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