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Short-Term Licence to Occupy

There is a licence to occupy and a short term licence to occupy. Depending on your situation you might need one or the other. A licence to occupy is not a long term agreement by its description; however, it does not have limitations in the actual contract terms. Therefore, if you want specific limitations to the contract you would need the short term licence to occupy. It is meant to be a contract for less than 6 months, with no possibility to extend the contract beyond a six month period. In a licence to occupy you are not offering exclusive rights to the licensee. Instead it still allows for other people including the landlord to come on to the premises without permission.

In a tenancy agreement you are letting out private property such as a residential home. In a licence to occupy situation we are talking about occupying a commercial space such as an office building, retail space, or restaurant space. It is necessary for a landlord or even others to be able to occupy the space for a visit. Like a tenancy the short term licence to occupy is going to require rent for the period of occupation.

The UK has specific laws regarding the short term licence to occupy and it explains quite clearly the differences between tenancy and the licence to occupy. You should know the differences before using either agreement, to ensure you are entering into the proper terms. Tenancy is protected by Part II of the Landlord and Tenant Act of 1954. The act clearly explains the possession and recovery of possession required by the parties, and how it is different from the short term licence to occupy.

The short term licence to occupy does not give the licensee the right to renew the agreement if the landlord has asked for the tenant to leave. Once the tenant asks to quit the lease the tenant must do so. The landlord has possession since a tenant never claimed full possession and has agreed to a contract end date in the document.

There are certain clauses that can be added to the short term licence to occupy. For example you can add the clauses without changing the UK laws the short term licence to occupy are based on. All of the agreements must have the proper dates and include the parties that are discussed in the contract. The exact nature of the contract must also be spelled out. This area will ask for names, dates, purpose of agreement, and rent that was agreed upon by both parties. There is also a section for rental rights on behalf of the landlord and tenant.

The short term licence agreement will also explain the small fee that the licensee must pay in order to have access to the property. This small fee must be reflective of the licensed property value. In other words a landlord cannot ask for more than market value in rent.

Our site offers the short term licence to occupy in document template form. This form allows you to sign a general agreement without the cost of solicitors involved. The document template has been created by a solicitor in regards to the UK laws you must adhere to. It is a completely DIY site. You will be able to pay a small fee, download the document, and make changes when necessary. Keep in mind any changes made must adhere to the UK laws and if you have questions you should seek solicitor advice. Since the document template can be saved to your hard drive you are able to reuse it as necessary.