Where a new mutual is to make use of property belonging to the Local Authority, the latter may transfer the freehold under the Transfer Agreement, or may allow the mutual to occupy the property under a lease or a licence
This template assumes that the Local Authority will provide two properties for use by the mutual, one under a Lease and the other under a Licence to Occupy. The decision on whether a Lease or Licence to Occupy is appropriate needs to be considered on a case-by-case basis with legal advice
Key issues covered in this template
Break options
Designated hours
End of Service Agreement
Licence fee/payments
Licence to occupy
Licensee's obligations
Breach of undertaking
Termination
No warranties for use or condition
Limitation of Licensor's liability
Third party rights
Governing law & jurisdiction
Transfer of freehold
What to watch out for
This document is a template Licence to Occupy to be granted by the Local Authority to the mutual. This form of agreement is only appropriate where the mutual will not have exclusive possession of the property