A commercial property licence agreement is an agreement between the property owner and the occupier (or “Licensor” and “Licensee”) which offers the occupier the right to use the premises in a business capacity.
Licences are not leases and, importantly, a licence only gives the licensee limited rights to use the premises, it does not offer any other rights, such as exclusivity, rent control, or the right to remain for a specific period of time.
A licence may be utilised rather than a lease when you informally share a space with the Landlord or another company and do not have exclusive occupation.
Licences need to be carefully drafted to ensure that the obligations imposed on the parties are clear and to ensure that the method of occupation is compatible with a licence rather than a lease, which can have very different consequences. Due to the complexities of this area of law, you are strongly advised to consult a specialist commercial property lawyer at Anthony Gold before entering into a licence arrangement.