Two new short-term tenancy documents have been added to the property
for the Licence to Occupy Commercial Premises and Tenancy at Will for
Commercial Premises. The Licence to Occupy Heads of Terms and Tenancy at
Will Heads of Terms have also been updated.
Within the property portfolio there are several template tenancies at will
and licences to occupy which have been drafted for specific commercial
uses. The template Tenancy at Will for Commercial Premises and Licence to
Occupy Commercial Premises can be tailored to suit many commercial uses.
These documents should be used for short-term arrangements to occupy
business premises. This may be because the parties are in the process of
negotiating a formal lease or because the Landlord has other long-term
plans for the premises and is happy for the premises to be occupied in the
short-term. Due to the short-term nature of these tenancies, these
templates are personal to the occupiers and the benefit of these agreements
cannot be assigned or transferred to a third party.
As is covered in the document description for the Licence to Occupy
Commercial Premises, you need to be wary of granting a licence when it is a
lease. Although these documents can be similar, a licence is not an
interest in land and therefore the licensee cannot acquire security of
tenure. If there is any doubt as to whether a proposed arrangement will be
a lease or a licence, the safest approach is to grant a lease which
excludes the tenant’s right to security of tenure.
As always, you should seek legal advice if you are not sure whether these
templates will meet your needs or if you need help to edit or add to them
to meet your particular needs.
The contents of this Newsletter are for reference purposes only and do not constitute
legal advice. Independent legal advice should be sought in relation to any specific