What does a licence agreement mean? How does it compare to a lease?
There are significant differences between our licence agreement and a traditional lease.
For example, most leases oblige the customer (lessee) to pay not only a rent but also a service charge, which varies from year to year and over which they have little control. The rent element of our licence fee is approximately half.
Another example is in the unit of measurement. Traditional lease agreements promote the cost of rent on their websites, (ignoring the service charge), measured in £s per square foot or per square metre per year. We do not do this. We charge a single inclusive price per unit per month and the price is set to ensure we offer the best value for money in the local area.
| Feature | Traditional lease | Our monthly licence agreement |
|---|---|---|
| Commitment | 3, 5 or 10 years | Rolling monthly, although our longest staying customers have stayed 20+ years |
| Flexibility | Depends on precise restrictive wording of the lease | Customers are welcome to upscale or downsize as their circumstances change |
| Cost | Solicitors charge minimum of £2,000 for simple lease | No legal fees |
| Time | Normally 3- 6 months’ negotiation | Typically half a day required, with the ability to move onsite the following day |
| Complexity | Often 50+ pages, containing pages of restrictions on the lessee | Single page contract written in Plain English and certified by the Crystal Mark, making it easy to understand |
| Outgoings | Rent, plus service charge, that varies from year to year and over which lessee has minimal control | One monthly fixed cost including superfast internet with full failover, free parking, building insurance, maintenance, security, refuse disposal, handyperson service and reception team. There is no charge cleaning of kitchens, toilets and communal areas. Electricity and heating is included in most offices. |
| Extras | Minimal extra services are offered | Company name at entrance to site, and prominently displayed on studios and workshops. Access to range of meeting rooms with A/C. |
| Internet provision | Lessees are normally obliged to arrange their own internet service | Superfast internet with full failover plus the services of in-house telecoms expert is included in our licence. Fixed bandwidth available. |
| Communications via telephone | Lessee normally obliged to arrange their own | Access to excellent value multi-function VoIP telephone system with complimentary training and set up. |