Why seek legal advice?
Whether you are a landlord or a tenant the terms and conditions of a licence need to be carefully drafted and scrutinized to make sure your business interests are protected. At Davisons, our commercial property solicitors are dedicated to negotiating the most favourable licence terms for our clients.
If you are a tenant, these are some questions to consider before signing a commercial property licence:
- What equipment and shared facilities are included under the licence? (Internet access, shared kitchen etc.)
- What services are included? (Cleaning, photocopier maintenance etc.)
- How much will the landlord charge for extra services such as printer use?
- Are you allowed to put up signage to advertise your business?
- What are the arrangements for parking?
- Are you permitted to access the premises out of office hours if needed?
- What happens in the event of any loss or damage to property and equipment?
- How will your deposit money be protected if the landlord goes bankrupt? Unlike with a lease agreement the landlord has no legal obligation to pay your deposit into a government approved deposit protection scheme.
- Under what conditions will money be deducted from your deposit?
- Are you happy with the notice period specified under the licence?
If you are a landlord, it is important to make sure that a licence agreement does not unintentionally become a lease with all the associated landlord’s and tenant’s rights and obligations under the law.
Granting a tenant exclusive possession of a property is a lease and not a licence. If a tenant can lock you out of the property then you have granted them a lease – the fact that you have called it a licence does not matter.
Providing for a fixed term or using incorrect terminology (for example, ‘rent’ instead of ‘licence fee’) also means a lease may have been granted rather than a licence. A licence that is correctly drawn up by an experienced commercial property solicitor eliminates this risk.
Make a Free Initial Enquiry
Whether you are a landlord or a tenant, if you are planning to enter into a licence to occupy our specialist commercial property solicitors can help.
With our free initial assessment and same day response promise, you can easily find out what your options are before planning your next steps.
To arrange your free initial assessment today please call 0808 304 7471.