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Free Licence to Occupy Template

A professionally drafted licence to occupy for property owners in England and Wales. Grant permission to use premises without creating a formal tenancy.

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LICENCE TO OCCUPY
Personal Licence (Not A Tenancy)  ·  England And Wales
LICENSOR
James Hartley
22 Oak Avenue, Leeds LS1 4BT
By: james.hartley@example.co.uk | 07700 900123
LICENSEE
Sophie Turner
7 Brook Lane, Manchester M1 2QR
By: sophie.turner@example.co.uk | 07700 900456
Room 3, 22 Oak Avenue, Leeds LS1 4BT
from 2026-06-01 · £650.00 per calendar month
This Licence to Occupy (this "Licence") is made on 2026-06-01 between James Hartley of 22 Oak Avenue, Leeds LS1 4BT (the "Licensor") and Sophie Turner (the "Licensee"). This Licence grants the Licensee a personal permission to occupy the Property identified below. It does not grant exclusive possession, applying the test in Street v Mountford [1985] AC 809 and the sham-licence principles in Antoniades v Villiers [1990] 1 AC 417. It is not an assured or assured shorthold tenancy within the meaning of section 1 of the Housing Act 1988, and is not an Assured Periodic Tenancy under the Housing Act 1988 as amended by the Renters' Rights Act 2025 (in force 1 May 2026). The parties agree as follows:
1.
GRANT OF LICENCE
The Licensor grants the Licensee a personal, non-exclusive licence to occupy Room 3, 22 Oak Avenue, Leeds LS1 4BT (comprising: Double bedroom on first floor with shared bathroom) (the "Property") commencing on 2026-06-01. This Licence is personal to the Licensee, is not transferable or assignable, and does not create any legal estate, tenancy or other proprietary interest in the Property. The Licensor retains the right at all times to enter the Property, to move the Licensee to another comparable area of the Property on reasonable notice, and to exercise general control over the Property — features which, applying Street v Mountford, are inconsistent with exclusive possession. The Licensor resides at the Property as their only or principal home and shares the accommodation with the Licensee. The Licensee is therefore an excluded occupier within the meaning of section 3A of the Protection from Eviction Act 1977; the s.3 court-order requirement does not apply.
2.
NO EXCLUSIVE POSSESSION
The Licensee shall NOT have exclusive possession of the Property or any part of it. The Licensor reserves the right to enter and use the Property and to permit other persons to do so. The parties acknowledge that this Licence reflects the substance of the arrangement, applying both Street v Mountford [1985] AC 809 and the sham-clause principle in Antoniades v Villiers [1990] 1 AC 417; neither party intends this Agreement to be construed as a sham device or as a lease of uncertain duration. Nothing in this Agreement shall operate as a 90-year lease under section 149(6) of the Law of Property Act 1925 or the principle in Mexfield Housing Co-operative v Berrisford [2011] UKSC 52. Either party may terminate this Licence in accordance with its terms.
3.
LICENCE FEE AND DEPOSIT
The Licensee shall pay a licence fee of £650.00 per calendar month, payable in advance by bank transfer or standing order to an account nominated by the Licensor in writing. The fee is consideration for the personal permission to occupy and is not "rent" within the meaning of the Housing Act 1988. A refundable damage deposit of £300.00 is payable on or before the commencement date. As this is a licence and not an assured tenancy, the statutory tenancy deposit schemes under sections 212-215 of the Housing Act 2004 do not apply. The Licensor shall nevertheless hold the deposit on trust for the Licensee, shall not use it as fee, and shall return it within 14 days of the end of the Licence subject only to deductions for unpaid sums, damage beyond fair wear and tear or breach of this Agreement, itemised in writing.
4.
LICENSEE OBLIGATIONS
The Licensee agrees to: (a) pay the licence fee on the due date; (b) use the Property only for personal residential occupation and not for any business or trade; (c) keep the Property and any shared areas clean, tidy and tenantable; (d) not cause or permit any nuisance, annoyance or damage to the Property or to neighbours (including under the Anti-social Behaviour, Crime and Policing Act 2014); (e) report promptly any disrepair, defect, electrical fault, water leak or hazard to the Licensor; (f) not make any alteration, decoration or addition to the Property without the Licensor's prior written consent; (g) comply with all applicable laws; and (h) vacate the Property on termination of this Licence removing all personal belongings and returning all keys.
5.
LICENSOR OBLIGATIONS
The Licensor agrees to: (a) make the Property available to the Licensee for personal occupation during the term of this Licence; (b) maintain the Property in a condition that is safe for its intended use, discharging the common-law duty of care to visitors under the Occupiers' Liability Act 1957 and, to trespassers, under the Occupiers' Liability Act 1984; (c) where the Property contains gas appliances or installations supplied for the Licensee's use, comply with the Gas Safety (Installation and Use) Regulations 1998; (d) ensure smoke and carbon-monoxide alarm provision sufficient to discharge the occupiers' liability duty (the Smoke and Carbon Monoxide Alarm (Amendment) Regulations 2022 are addressed expressly for tenanted premises but the standard of care is the relevant benchmark); (e) not otherwise interfere with the peaceful enjoyment of the Property save as provided in this Agreement; and (f) handle personal data relating to the Licensee in accordance with the Data Protection Act 2018 as amended by the Data (Use and Access) Act 2025 (SI 2026/82 in force 5 February 2026) and the UK GDPR.
6.
SERVICES AND BILLS
The licence fee is a composite payment covering both the right to occupy and the services specified below. The following services are INCLUDED within the licence fee: utility bills (gas, electricity, water), Wi-Fi / broadband, weekly cleaning of communal areas. The Licensee may access the following shared areas in common with other permitted users: Kitchen, living room, garden, ground-floor WC.
7.
HOUSE RULES AND CONDUCT
Quiet hours: 23:00 to 07:00 daily.

Guests: Overnight guests are permitted with reasonable prior notice to the Licensor. No guest may stay for more than three (3) consecutive nights without the Licensor's written consent.

Smoking: Smoking (including e-cigarettes, vaping and similar) is strictly prohibited throughout the Property, both inside and in any shared external area.

Pets: No pets or animals of any kind shall be kept at the Property.

Additional rules: Shoes off in living room. Personal cooking utensils labelled and stored on assigned shelf..
8.
LICENSOR ACCESS AND TERMINATION
The Licensor and their authorised agents shall be entitled to access the Property on giving reasonable prior notice to the Licensee (not less than 24 hours, save in an emergency) for inspection, maintenance, repair or to comply with statutory obligations.

Either party may terminate this Licence by giving not less than 28 days written notice to the other. In addition, the Licensor may terminate this Licence immediately, without notice, if the Licensee: (a) fails to pay any sum due within 7 days of the due date; (b) commits a serious or persistent breach of any obligation under this Agreement; (c) engages in antisocial, threatening or unlawful conduct at the Property; or (d) abandons the Property. On termination the Licensee shall vacate the Property and remove all belongings. The Licensor shall not use or threaten violence to secure possession (section 6 of the Criminal Law Act 1977) and, where the Protection from Eviction Act 1977 applies, will follow its procedures. The criminal offence of unlawful eviction (section 1 of the Protection from Eviction Act 1977) applies to all residential occupiers including licensees.
9.
STATUTORY POSITION, ANTI-SHAM AND DATA
No tenancy / RRA 2025 non-application: nothing in this Licence creates, or shall be deemed to create, a tenancy or any leasehold, freehold or other proprietary interest in the Property. Because this is a genuine licence and not a tenancy, the assured periodic tenancy regime introduced by the Renters' Rights Act 2025 (in force 1 May 2026) does not apply, the deposit-protection regime in the Housing Act 2004 does not apply, and the prohibited-payments regime in the Tenant Fees Act 2019 does not apply.

Anti-sham (DMCC Act 2024 s.226): the parties confirm that this Licence accurately reflects the substance of the arrangement and is not a sham device intended to deprive the Licensee of statutory rights. Giving false or misleading information about a consumer's housing rights — for example presenting a true tenancy as a "licence to occupy" — is an offence under section 226 of the Digital Markets, Competition and Consumers Act 2024, enforceable by the Competition and Markets Authority and local trading standards. The Licensor expressly disclaims any intention to engage in such conduct.

Equality: neither party shall discriminate against the other on any protected ground within the meaning of the Equality Act 2010. Where the Licensor is a resident in a small premises, the limited exception in Schedule 5 paragraph 3 of that Act applies, but the prohibitions on discrimination on the grounds of race or disability remain in full force.

Data handling: personal data relating to the Licensee is processed only for the purposes of administering this Licence and complying with statutory duties, in accordance with the Data Protection Act 2018 as amended by the Data (Use and Access) Act 2025 (SI 2026/82 in force 5 February 2026) and the UK GDPR. The Licensor shall additionally provide the Licensee with a copy of its privacy notice and shall delete the Licensee's data within 6 years of termination of this Licence unless required to retain for limitation or regulatory purposes.
10.
NOTICE, GOVERNING LAW AND JURISDICTION
All notices under this Agreement shall be in writing and may be served by post to the address stated above or by email to the address last notified by the recipient. Either party may terminate this Licence by giving the other not less than 28 days written notice, subject to any earlier termination right set out in this Agreement and any applicable statutory requirements. This Licence is governed by and construed in accordance with the law of England and Wales and the parties submit to the exclusive jurisdiction of the courts of England and Wales.
11.
GENERAL PROVISIONS
If any provision of this Licence is found by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions shall continue in full force and effect. No variation shall be effective unless made in writing and signed by both parties. A person who is not a party to this Licence has no rights under the Contracts (Rights of Third Parties) Act 1999 to enforce its terms. This Licence constitutes the entire agreement between the parties in respect of its subject matter and supersedes all prior representations or arrangements.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date indicated.
LICENSOR
James Hartley
Date: ____________________
LICENSEE
Sophie Turner
Date: ____________________

Available as a print-ready PDF or an editable Microsoft Word (.docx) file.

What Is a Licence to Occupy?

A licence to occupy is a personal permission granted by a property owner (the licensor) allowing another party (the licensee) to use or occupy a property for a specified purpose and period. Unlike a tenancy, a licence does not grant the licensee exclusive possession of the property, which is the key legal distinction between the two arrangements.

Licences to occupy are used in various situations, including temporary use of commercial space, short-term occupation pending completion of a lease, use of space for events, shared workspace arrangements, and situations where the owner needs to retain control and access to the property. Because a licence does not create a legal interest in the land, the licensee has fewer statutory protections than a tenant.

The distinction between a UK licence and a tenancy is determined by the substance of the arrangement, not simply by what the document is called. British courts will look at whether exclusive possession has been granted, the duration of the arrangement, and whether rent is payable to determine the true nature of the agreement under English law.

What's Covered in This Template

Doxuno's licence to occupy template covers the key provisions needed for a clear arrangement that avoids inadvertently creating a tenancy.

Parties

Full details of the licensor (property owner) and the licensee (occupier).

Property Description

Clear identification of the premises or area to be occupied, including any shared or excluded areas.

Purpose of Occupation

The specific permitted use of the premises, which may be restricted to particular activities.

Licence Period

Start and end dates of the licence, with provisions for early termination by either party.

Licence Fee

The fee payable for occupation, payment frequency, and method of payment.

Access and Shared Use

The licensor right to access the premises and any areas shared with the licensor or other licensees.

Condition and Maintenance

Responsibilities for maintaining the premises during the licence period.

Insurance

Insurance responsibilities for both parties covering the premises and the licensee activities.

Termination

Notice periods and circumstances under which either party may terminate the licence early.

No Tenancy Declaration

Express confirmation that the arrangement is a licence and does not create a tenancy or any interest in land.

How to Create Your Licence to Occupy

Follow these steps to create a licence to occupy that clearly establishes a non-tenancy arrangement.

  1. 1

    Define the premises and purpose

    Clearly describe the area to be occupied and the specific purpose for which the UK licence is granted. Avoid granting exclusive possession of a self-contained unit, as this may create a British tenancy rather than a licence in England and Wales.

  2. 2

    Set the licence period and fee

    Specify the start and end dates of the licence and the fee payable. Consider keeping the term relatively short to reinforce the temporary nature of the arrangement.

  3. 3

    Retain access rights

    Include clear provisions allowing the UK licensor to access the premises at reasonable times. This is a key factor in distinguishing a British licence from a tenancy under English law in England and Wales.

  4. 4

    Address practical matters

    Cover insurance, maintenance responsibilities, permitted alterations, and any restrictions on use such as operating hours or noise levels.

  5. 5

    Execute the licence

    Both UK parties should sign the licence. A British licence does not need to be executed as a deed in England and Wales, but both parties should retain a signed copy.

Why Doxuno documents are different

Four things that make our templates more thorough than AI-generated drafts and more current than static template libraries.

Accurate

Country-specific legal content

Drafted with legal expertise for each jurisdiction, far more thorough than AI-generated drafts that copy generic clauses across borders.

Always current

Always current with the law

Templates carrying statute references are continuously updated as the law changes. Your document always reflects the current legal framework.

Free PDF

Print-ready PDF

Free to download. Vector text, embedded fonts, statute citations baked in. Print, sign, file. Ready for any signing flow including electronic signature.

Word · .docx

Editable Word (.docx)

Continue editing in Word after download. Add custom clauses, reuse the template for similar agreements, or share with a colleague for collaborative review.

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Legal Considerations

The legal distinction between a licence and a tenancy is critical. If a court determines that the arrangement is in substance a tenancy, statutory protections for tenants will apply regardless of the document title.

This template is for informational purposes only and does not constitute legal advice. Consult a qualified solicitor for advice specific to your situation.

Reviewed for England & Wales law

Licence vs Tenancy

The leading UK case of Street v Mountford (1985) established that the key factor in distinguishing a UK licence from a tenancy is whether exclusive possession has been granted. If the occupier has exclusive possession for a term at a rent, the arrangement is a tenancy under English law regardless of the label used. Sham arrangements designed to avoid British tenancy protections will not be upheld.

Exclusive Possession

To maintain the arrangement as a UK licence, the British licensor should retain genuine rights of access and control over the premises. Simply labelling the agreement as a licence while granting exclusive possession will not prevent it being treated as a tenancy by the courts in England and Wales.

Termination Rights

A UK licence can generally be terminated on reasonable notice, and the licensee has no statutory right to remain in occupation after termination in England and Wales. This contrasts with a British tenancy, where the tenant may have security of tenure and the UK landlord must follow specific procedures to recover possession under English law.

Business Premises

If the UK licence is for business premises, it is important to ensure the arrangement genuinely operates as a licence. If it is found to be a tenancy in England and Wales, the British licensee may acquire protection under the UK Landlord and Tenant Act 1954, including the right to renew the lease.

Frequently Asked Questions

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