Agreement for Use of Bare Land for Storage of Goods or Machinery

Licence for Storage of Goods on Bare Land

PROP.IND.23

This Licence for Storage of Goods on Bare Land should be used where the owner of an area of bare land wishes to allow a business or individual to store goods on the land. An example would be an area of hardstanding which is to be used for the storage of machinery or equipment.

Such an arrangement could be construed as a lease or a licence. This document aims to create a licence by giving the Licensor the right to move the Licensee to alternative premises. This helps to make the case that the Licensee does not have exclusive possession of the Premises (exclusive possession points towards the arrangement being a lease, with the risk that the tenant obtains security of tenure).

Clause 1 contains the definitions. The “Licence Fee” should include a charge for any services provided by the Licensor and any contribution towards rates or bills. There is no separate clause requiring the Licensee to pay such charges. Provision of services (if any) is covered in Clause 4.

The definition of Premises makes optional reference to a plan. It is recommended that a plan is included, showing the Premises edged red, so that the extent of the Premises is clear.

The “Permitted Hours of Access” should reflect the hours during which the Licensee is able to access the land. It may not always be appropriate for the premises to be accessed 24 hours a day.

Clause 2 contains the grant of the Licence and the procedure for terminating it before the end of the Licence Period.

Clause 3 contains the Licensee’s covenants. These cover payment of the Licence Fee, use, alterations and the Licensor’s right of entry.

Clause 4 contains an optional covenant regarding the provision services such as security and lighting. The Licensor should insert details of any services that will be provided. As there is no service charge, the Licence Fee should include a charge for any services provided by the Licensor. Clause 4 also provides for the Licensee to have access to the Premises via the Licensor’s adjoining property. This will be relevant if the Premises are not accessible directly from the public highway.

Clause 5 contains some standard clauses including a requirement for notices (e.g. a notice to terminate the Licence) to be served in accordance with section 196 of the Law of Property Act 1925. This means that notices should be delivered by hand or sent by recorded or special delivery post. If the notice is sent by recorded or special delivery post, service is deemed to occur at the time at which the letter would “in the ordinary course” be delivered.

Optional phrases / clauses are enclosed in square brackets. These should be read carefully and selected so as to be compatible with one another. Unused options should be removed from the document.

This Licence for Storage of Goods on Bare Land is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.

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