A premises licence will lapse if the holder of the licence dies, becomes mentally incapable, becomes insolvent or is dissolved. 

In the normal course of events, the licence would lapse. However, if there is some time before, the deceased person's estate can be dealt with or an administrative receiver could be appointed. This could impact on those with interests in the premises, such as an owner, lessor or employees working at the premises. 

The Licensing Act 2003 provides special arrangements for the continuation of permissions under a premises licence and this is called an interim authority.

An application for an Interim Authority Notice must be made within 28 days from the date of the death, incapacity or insolvency to enable the premises to continue to trade. The Interim Authority Notice will only stay in existence for a period of three months, after which time it lapses. A transfer must take place within that three months period to fully reinstate the licence.