The benefits of a licence vs a lease
We know that finding a space for your business can be an overwhelming process, but at Capital Space we try to make it as easy as possible. Our flexible monthly licences mean that you aren’t tied down by restrictive contracts.
Designed to give you peace of mind, our licences give you the option to terminate your agreement with as little as a month’s notice, and there are no strings attached because we know SMEs often need to upsize or downsize depending on a range of external and internal factors.
What is the difference between a licence and a lease?
If you are looking to switch from a lease to a licence, the terminology can get confusing. In most cases, customers in a lease agreement also have to pay a service charge, as well as rent, which can vary from year to year and the lessee has no control over it.
Traditional property leases measure the rent according to £s per square foot/metre per year which we don’t do! Instead we use a single price per unit per month and our price is set, ensuring we offer the best value for money in the area.
The benefits of a licence versus a lease
| Feature | Traditional lease | Capital Space monthly licence |
| Commitment | 3, 5 or 10 years | Rolling monthly, although our longest staying customers have been with us for 20+ years |
| Flexibility | Depends on precise restrictive wording of lease | Customers can easily upsize, downsize or leave as economic circumstances change. |
| Cost | Solicitors charge minimum of £2,000 for simple lease. | No legal fees |
| Time | Normally 3-6 months negotiation | 0.5 days, move in tomorrow |
| Complexity | Often 50+ pages containing pages of restrictions on lessee | Single page licence written in plain English and certified by the Crystal Mark. |
| Outgoings | Rent plus service charge that varies from year to year and over which tenant has minimal control | One monthly fixed cost includes internet with full failover, building insurance, maintenance, security, refuse disposal, handyman service and reception team. There is no charge for use of cleaning of kitchens, toilets and communal areas.
Free parking. Electricity is included in some offices. |
| Extras | Minimal | Company name at entrance to site, and prominently displayed on studios and workshops. Access to range of meeting rooms available at discounted rates. |
| Communications via internet | Lessee normally obliged to arrange their own. | High speed internet with full failover to ensure continuity of service
Fixed bandwidth available. |
| Communications via telephone | Lessee normally obliged to arrange their own. | Option to sign up to VoIP telephony packages on a simple, monthly licence |
If you are looking for a business space and want to find out more about our flexible licences, please get in touch.
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