{"id":5336,"date":"2026-05-26T04:39:34","date_gmt":"2026-05-26T04:39:34","guid":{"rendered":"https:\/\/fasterdraft.com\/?post_type=product&#038;p=5336"},"modified":"2026-05-26T07:34:08","modified_gmt":"2026-05-26T07:34:08","slug":"license-to-occupy-commercial-property-england","status":"publish","type":"product","link":"https:\/\/fasterdraft.com\/uk\/product\/license-to-occupy-commercial-property-england","title":{"rendered":"Licence to Occupy Commercial Property (England)"},"content":{"rendered":"<h2>What is a licence to occupy template for commercial property?<\/h2>\n<p>A licence to occupy commercial properties, also known as a business licence, is a legal agreement between the commercial property owner and the tenant under which the tenant gets the permit to occupy designated areas in the commercial property for business purposes. This licence to occupy template defines the duration and start date of the licence, property description, access rules, rent payment, and termination.<\/p>\n<p>This licence to occupy agreement template can be used for various types of commercial and business properties located in England and Wales. This agreement cannot be used for renting out and occupying the commercial property in exclusive possession. In such a case a standard <a href=\"https:\/\/fasterdraft.com\/uk\/product\/business-property-lease-agreement-england\"><em>business lease property agreement<\/em><\/a> should be used instead.<\/p>\n<h2>When should you use this licence to occupy template?<\/h2>\n<p>This fully customisable template for business licence to occupy can be used for different types of properties and business purposes, including:<\/p>\n<ul>\n<li><em><strong>retail kiosks<\/strong><\/em> located in large shopping malls;<\/li>\n<li>shopping centre spaces;<\/li>\n<li><em><strong>office spaces<\/strong><\/em> in business centre or co-working;<\/li>\n<li><em><strong>shared commercial premises<\/strong><\/em> for small businesses and startups.<\/li>\n<\/ul>\n<p>The present template is a helpful legal tool that helps to define key terms and conditions of the lease, as well as protect parties&#8217; interests in case of a business.<\/p>\n<h2>Licence to Occupy vs Commercial Lease<\/h2>\n<p>This licence to occupy agreement template shall not be confused with the <a href=\"https:\/\/fasterdraft.com\/uk\/product\/business-property-lease-agreement-england\"><em>business property lease agreement<\/em><\/a>. While both documents deal with renting out commercial property, they differ significantly as follows:<\/p>\n<h3>Parties Involved<\/h3>\n<p>The parties to a standard business lease agreement are a landlord who is a property owner and a tenant. Under the licence to occupy template UK, the licensor is a property owner or the tenant under the original lease agreement, while a licensee is a business or sole trader who gets the licence to occupy it.<\/p>\n<h3>Scope of Rights<\/h3>\n<p>In a business lease the tenant gets the exclusive right to possess and occupy the property, known as a security of tenure. This is a tenant&#8217;s statutory right to request a landlord further renewal of the business lease after its expiration. On top of that, the security of tenure protects the tenant against unlawful eviction from the property.<\/p>\n<p>Under a licence to occupy template, the licensee shall only get the non-exclusive possession of the property that includes the right to access the designated area for business purposes. The licence does not prolong automatically, and either party should have the right to end it any time by sending a prior written notice to the other party.<\/p>\n<h3>Purpose<\/h3>\n<p>A business licence agreement is usually being used for a long-term lease arrangement. On the other hand, a licence to occupy template is used for short-term occupation of the designated area and is ideally used by small businesses, retail shops or startups operating in the UK.<\/p>\n<h2>What should be included in this template?<\/h2>\n<p>A typical business licence to occupy template UK should include a number of important sections:<\/p>\n<h3>Designated Area<\/h3>\n<p>This section is a part of a commercial property that is being occupied by the licensee for a defined period of time. When describing a designated area, the text of the licence to occupy agreement template shall include the following:<\/p>\n<ul>\n<li>brief description;<\/li>\n<li>schedule of condition (can be attached as a separate schedule);<\/li>\n<li>access ways by which tenants, customers and employees can get to the designated area;<\/li>\n<li>permitted use or purposes for which a designated area can be used for;<\/li>\n<li>HM Land Registry details, if the property title is registered.<\/li>\n<\/ul>\n<h3>Licence Period<\/h3>\n<p>The text of the licence to occupy agreement template should outline the commencement date of the licence and its set expiration date. The commencement date is that date other than the date of signing this agreement by the licensee and the licensor.<\/p>\n<h3>Scope of Rights<\/h3>\n<p>To protect the landlord, this agreement should clearly outline that the property is provided in a non-exclusive possession, subject to the terms and conditions of the licence. Usually the licence is personal for a tenant and cannot be further assigned to third parties without the landlord&#8217;s prior written permission. Under the business occupancy licence:<\/p>\n<ul>\n<li>No relationship of landlord and tenant is created;<\/li>\n<li>The licensor retains control and possession of the designated area; and<\/li>\n<li>The licensee has no right to exclude the licensor from the designated area.<\/li>\n<\/ul>\n<h3>Termination<\/h3>\n<p>Usually a business licence to occupy template allows either party to terminate this lease at any time by providing prior written notice, provided either party commits the breach.<\/p>\n<p>A standard business practice requires a party committing a breach to remedy such a breach within 5 to 15 days. If the breach is not remedied within that period of time, another party can send a termination notice.<\/p>\n<h2>What are the key features of this business licence to occupy template?<\/h2>\n<p>By customising this document with FasterDraft, you get a template with the following benefits:<\/p>\n<ul>\n<li>a document that is fully compliant with the <a href=\"https:\/\/www.legislation.gov.uk\/id\/ukpga\/Geo5\/15-16\/20\"><em>Law of Property Act 1925<\/em><\/a> and\u00a0the <a href=\"https:\/\/www.legislation.gov.uk\/ukpga\/Eliz2\/2-3\/56\/contents\"><em>Landlord and Tenant Act 1954<\/em><\/a>;<\/li>\n<li>a document that is created by qualified solicitors;<\/li>\n<li>a document suitable for application in England and Wales;<\/li>\n<li>a template that can be customised for different types of commercial property;<\/li>\n<li>a document that is fully editable after the purchase;<\/li>\n<li>a template with a professional wording and clear structure;<\/li>\n<li>a template that can be used for various flexible arrangements.<\/li>\n<\/ul>\n<h2>How to customise this licence to occupy template UK?<\/h2>\n<p>To get a fully customisable document, follow a few easy steps below:<\/p>\n<ol>\n<li>Click the &#8220;Create Document&#8221; button.<\/li>\n<li>Answer simple questions in the form.<\/li>\n<li>Select a template&#8217;s format \u2013 a licence to occupy template UK PDF or Word.<\/li>\n<li>E-sign the document (for a licensor).<\/li>\n<li>Make a payment.<\/li>\n<\/ol>\n<p>The document is ready for instant download immediately after the purchase.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is a licence to occupy template for commercial property? A licence to occupy commercial properties, also known as a business licence, is a legal agreement between the commercial property owner and the tenant under which the tenant gets the permit to occupy designated areas in the commercial property for business purposes. This licence to [&hellip;]<\/p>\n","protected":false},"featured_media":5341,"comment_status":"open","ping_status":"closed","template":"","meta":{"_acf_changed":false},"product_brand":[],"product_cat":[124],"product_tag":[],"class_list":["post-5336","product","type-product","status-publish","has-post-thumbnail","product_cat-lease-contract","first","instock","virtual","purchasable","product-type-simple"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Licence to Occupy Commercial Property (England) | Template Online<\/title>\n<meta name=\"description\" content=\"Make a customisable license to occupy template for commercial property in England and Wales in 5 min. E-sign online. No subscription and no sign up.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fasterdraft.com\/uk\/product\/license-to-occupy-commercial-property-england\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Licence to Occupy Commercial Property (England) | Template Online\" \/>\n<meta property=\"og:description\" content=\"Make a customisable license to occupy template for commercial property in England and Wales in 5 min. E-sign online. 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