Posted on: 23 May 2016

A licence could be a benefit to a start-up or small business looking for a short term property solution. Typically a licence will be available for buildings occupying a number of businesses, but they are generally more flexible, offering contracts for a period of one year or less and can usually be terminated at short notice

“It’s flexible and can be a good way to get an indication as to whether your business would flourish in a certain area.” says Paul from RICS (Royal Institution of Chartered Surveyors).

You should consider the fact that a licence gives you no automatic right to renew once it has expired and that it is technically not a tenancy agreement (it requires no rental payments but rather a licence fee or series of fees).

 “The disadvantage is that regardless of how well you have been trading from the property, you may have no rights to stay if the licensor wants the building back.” adds Jonathan from Talkspace Group

Tip:  Terms vary considerably with licences so you should check how often your licence fee needs to be paid so you can factor this into your business finance plans.

Some of the advantages and disadvantages of taking a license



Licences cover a short period of time (usually 12 months and under) and most licences require just a months’ notice to terminate should you change plans – ideal for making a move from the home office

You do not have any tenancy rights and no rights to renew the licence

Licences are generally inexpensive and don’t require large upfront fees. You are usually asked to put your first month down

Short notice termination also applies to the landlord, the notice is usually one month but this means you can be asked to leave the premises at any time

The landlord is responsible for insuring the premises and for repairs/ maintenance to the building

You are not usually allowed to alter any part of the premises for business needs


Click to download

Compare business insurance

Compare quotes online:

Get quotes now

Or for expert advice call:


Request a call back


Business Guidance

Taking a business lease

23 May 2016

Business Guidance

Buying business premises

23 May 2016

Business Guidance

Additional costs of business premises

23 May 2016

Business Guidance

Moving business premises

23 May 2016

Protect your business against the unexpected

We specialise in sourcing the right business insurance solutions for businesses and understand that every business requires different cover to protect against the unique risks it faces. Compare quotes online or for insurance advice, speak to our knowledgeable insurance specialists today. Call:   .

Compare quotes online

The information and tools contained in this guide are of a general informational nature and should not be relied upon as being suitable for any specific set of circumstances. We have used reasonable endeavours to ensure the accuracy and completeness of the contents but the information and tools do not constitute professional advice and must not be relied upon as such. To the extent permitted by law, we do not accept responsibility for any loss which may arise from reliance on the information or tools in our Insight Hub.