Provider Guide: Who Provides Licence to Occupy Agreements & How to Obtain Them
RishitaRishita
27th Aug 2025
5 min read (837 words)
A Licence to Occupy (LTO) is a personal right granted by a property owner, typically for flexible, short-term commercial use such as pop-up shops, serviced offices, interim workspace, or co-working, as explained by Stephensons . Since an LTO does not grant exclusive possession or a lasting legal interest, it is best suited to landlords, property managers, and occupiers looking for adaptable short-term solutions.
This guide explains who provides Licence to Occupy agreements, how landlords and occupiers can obtain them, and what role solicitors and property managers play in the process.
Current Legal & Regulatory Environment
With the introduction of the Renters' Rights Bill 2025 and new local council powers , rules around short-term property use are changing. The law now draws a firmer line between lease and licence, and LTOs can be reclassified as tenancies if exclusive possession or long-term arrangements are granted, as flagged by BHW Solicitors .
If reclassified, landlords risk losing flexibility and becoming subject to additional regulations. To avoid this, the Law Society and firms such as Trowers & Hamlins that agreements must be drafted carefully to ensure they remain licences, not leases.
Market Trends & Demand
The UK’s flexible office market is expanding at an impressive 11.4% CAGR through 2034 , driven by hybrid work and the need for agility. In 2025 alone, flexible workspace supply has risen 32% year-on-year and plug-and-play spaces now accounting for over 26% of London office portfolios .
For landlords, LTOs are a way to manage vacancy risk and monetise idle space. For occupiers, they provide quick, low-commitment access to workspaces, retail sites, or storage while avoiding the complexity of long leases.
Who Provides Licence to Occupy Agreements?
- Landlords and property owners typically issue LTOs when they want flexibility or need to allow multiple users.
- Solicitors such as Harper James play a key role in drafting agreements, while firms like OTS Solicitors and McDonnell Ellis provide review and negotiation to prevent agreements from slipping into tenancy status.
- Leanspace and its partner network help landlords maximise vacant office space by supporting everything from legal drafting to digital marketing.
- Workspace platforms like Hubble , WeWork , and Regus provide ready-made agreements for rapid launches.
- Specialist law firms such as BGLaw also tailor LTO services for commercial clients.
Why Choose a Licence to Occupy Agreement?
- Lower cost and commitment than a traditional lease.
- Faster setup — digital contracts and e-signatures can secure space within 48 hours.
- Flexibility — easy scaling, quick entry and exit, and bridging gaps between long-term lettings.
- Simpler compliance, since LTOs avoid many lease obligations.
Examples:
- A retailer secures a three-month concession site under an LTO for £2,000, opening a pop-up shop weeks faster (and cheaper) than through a lease.
- A startup moves into a serviced office on a rolling licence, adding extra meeting rooms as sales grow and adjusting costs month by month.
- A landlord fills an otherwise vacant floor with multiple short-term users, keeping income flowing while awaiting a long-term tenant.
How to Obtain and Manage a Licence to Occupy Agreement
- Define your needs: Decide the type of space, how long you need it, and the intended use. Clarify upfront whether you need shared or exclusive access.
- Find a provider: Leanspace may help you get started for vacant space solutions, but letting agents and workspace platforms are also common routes.
- Get legal advice: Engage a solicitor such as Ignition Law or OTS Solicitors to draft or review your agreement so it does not risk being treated as a lease.
- Agree the terms: Confirm fees, break clauses, permitted use, maintenance, and exit rights. Use digital document management for speed and transparency.
- Keep records: Store copies of the agreement safely so you’re covered for renewals or if a dispute arises.
- Stay flexible: Review the arrangement regularly and make adjustments as your needs change.
- Manage risk: Put the right insurance in place, check local licensing requirements, and deal with issues early before they escalate.
Professional Insights & Recommendations
LTOs can be highly effective, but they are not without pitfalls. Poorly drafted agreements have in some cases been reclassified as leases, reducing flexibility and increasing costs ( BHW Solicitors ). They are best viewed as short-term tools rather than substitutes for longer leases.
In today’s market, occupiers have significant leverage: it is fairly common to negotiate rent-free periods, rolling break clauses, or capped service charges. For landlords, LTOs keep income flowing during void periods. For occupiers, they provide a low-commitment way to test space before making bigger decisions.
Conclusion & Next Steps
A Licence to Occupy is one of the most effective tools for short-term, flexible space management in commercial property. With hybrid work and flexible retail on the rise, LTOs will play an even greater role for landlords monetising vacant assets and businesses seeking fast, frictionless access to space.
Next steps:
Download a sample Licence to Occupy template
Book a consultation with a property law advisor from the Leanspace partner network
Check out Licence to Occupy: Complete Guide for Commercial Property
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