Licences
A licence gives permission for the licence holder to occupy land ALONGSIDE someone with an interest in the land, for example the owner or tenant. A licence is a light touch agreement to use land without the risk of trespass. There is no right to exclude others from the land and there is no right to continue use of the land after the licence has expired.
If you are looking to apply for large amounts of funding it is best to avoid using a licence as funders often like to see a long-term lease in place. Likewise, if you are looking to invest a fair amount of time and finance it may be more suitable to gain a lease rather than a licence.
Licences can be a useful land agreement for example, licences can be a means of gaining swifter access to a site to begin work without the need for (or in the meantime of) longer legal negotiations on the contents of a prospective lease. It is possible to insert clauses providing the ability to trade.
A licence does not give any additional rights and does not give exclusive possession ie. as licensee you are unable to exclude others from the site. This means that the licensor doesn’t have to give the licensee any notice period to leave and there is no right to renew the licence or right to receive payment for improvements left on site at the end of the tenancy.
It can be viewed as a “light” legal agreement as there are no additional legal acts that will affect what you have agreed and a licence can be drawn up by anyone. It does not need to be registered with the Land Registry, nor does it attract liability for Stamp Duty Land Tax.
A fee may be charged for a licence. This is known as a licence fee, not a rent, and the amount should be agreed between the parties prior to the activity commencing and be recorded in the licence agreement. It need not be paid in cash; it could be in kind, including services or produce.
In 2019 Cardiff University Law School students carried out work on a more up to date licence relevant to community green space projects. This is provided on the link below –
Please be aware these are template agreements and will need to be adapted to the circumstances. You should seek advice on whether a licence is the right type of agreement for the group and for the landowner
>CLAS Cymru - Licence to Occupy
We have also acquired a template cropping or grazing licence which is more suitable in a rural or agricultural context
>CLAS Cymru – Cropping/Grazing Licence
Disclaimer: The guidance, information, opinions and flowchart(s) on this website are for general information only and should not be relied upon nor used as a substitute for legal advice. You should always take advice from your own legal adviser on your specific circumstances. As such, no responsibility can be accepted by Social Farms and Gardens to any individual or organisation for actions taken or refrained from by reference to these licences. Legal advice from suitable experienced specialist legal advisors should be taken.