The quick comparison
| Licence | Lease | |
|---|---|---|
| Best for | Yards, storage, short-term units | Units taken for a year or more |
| Minimum term | Often one month, then rolling | Agreed up front, often 1 to 5 years |
| Leaving | Usually one month's notice | At the end of the term or a break date |
| Legal costs | Usually none, standard document | Normally each side pays their own |
| Security | Less: permission to occupy | More: an interest in the property |
When a licence makes sense
A licence suits storage containers, yard plots and units you want for a short or uncertain period. It is quick to sign, cheap and flexible. You get permission to use the space on the agreed terms, rather than a legal interest in the property.
When a lease makes sense
If you are fitting out a workshop, installing machinery or want certainty for several years, a lease gives you more security and often a better rent for committing. Business leases in England may carry rights to renew under the Landlord and Tenant Act 1954 unless they are contracted out.
What to check before you sign
- Total monthly cost including VAT, service charges, power and rates.
- Deposit and how it is returned.
- Notice period and any break clauses.
- What use is permitted, and the site's operating hours.
- Repairs: who is responsible for what.
- Insurance: what you need to cover yourself.
This is general information, not legal advice. For a lease, take advice from a solicitor or surveyor.