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Closing down my small business, querying the term 'licensee'.

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Hello, I am hoping somebody can help me.

I am closing down my small business and giving notice to my landlord. I rent a portion of a shop floor to do my work, all utilities/rates are included. In my 'contract' - it is referred to as a 'license', I am referred to as the licensee and the landlord as licensor.

What is the difference between this and being referred to as business tenant? I remember wondering this when I set up, but was too nervous to rock the boat, if I am honest.

Many thanks.

Comments

  • Aquamania
    Aquamania Posts: 2,112 Forumite
    edited 30 May 2017 at 12:45PM
    Licensing agreements tend to be less 'formal' than a tenacy agreement.
    They are often favoured for start ups because of their typical 'easy in, easy out' format. With a commercial lease, you often get saddled with a full repair & refurbishment clause.
    Licences tend to be of a shorter duration than leases.

    Probably the main reason you were given a licence was that you appear to only have permission to use part of a property, whereas a lease would give you exclusive access rights to the property.

    The downside of a licence for a licencee (unless otherwise specified in the licence) is that you are not protected under the landlord & tenant act, in particular there is usually no right of automatic renewal which you would have for a lease under the act. (but that doesn't matter to you as it seems you are leaving early anyway, something else a licence allows whilst a tenancy usually does not, unless it has break clauses included)
  • Aquamania wrote: »
    Licensing agreemenst tend to be less 'formal' than a tenacy agreement.
    They are often favoured for start ups because of their typical 'easy in, easy out' format. With a commercial lease, you often get saddled with a full repair & refurbishment clause.

    Probably the main reason you were given a licence was that you appear to only have permission to use part of a property, whereas a lease would give you exclusive rights to the property.

    The downside of a licence for a licencee (unless otherwise specified in the licence) is that you are not protected under the landlord & tenant act, in particular there is usually no right of automatic renewal which you would have for a lease under the act. (but that doesn't matter to you as it seems you are leaving early anyway, something else a licence allows whilst a tenancy usually does not, unless it has break clauses included)

    Yes, this seems to work in my favour, thank you. Basically, the license states that 'This license can be ended by either party by giving to the other no less than two months notice, during which period the Licensee must maintain the rental payments in full'.

    I am giving five weeks notice. I also pay weekly, so 'two months notice' could be anything between 8-10 weeks. Obviously, if I have to pay eight weeks, I will have to do so, but I start the new job in five weeks and I will not have funds to pay for three weeks extra rent. I absolutely appreciate that if I have to, I will. I cannot gauge how the Landlord will take the news, he is a bit of a mixed bag.
  • lincroft1710
    lincroft1710 Posts: 18,863 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Two months would usually be 2 calendar months so if you gave notice today (30 May 2017) your last date as licensee would be 30 July 2017. You are contracted to pay rent until that date.
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    I am giving five weeks notice. I also pay weekly, so 'two months notice' could be anything between 8-10 weeks. Obviously, if I have to pay eight weeks, I will have to do so, but I start the new job in five weeks and I will not have funds to pay for three weeks extra rent. I absolutely appreciate that if I have to, I will. I cannot gauge how the Landlord will take the news, he is a bit of a mixed bag.
    no idea how you think the requirement to give 2 months notice allows you to give 5 weeks instead

    you are liable for 2 months rent from the date your notice starts. I agree that if you pay rent weekly, yet the licence talks in terms of months there is some ambiguity as to whether that is 8 weeks or more than 8 weeks - read your contract again?
  • Wowzers, someone isn't happy, are you secretly my landlord ;)

    There is a lot I haven't disclosed here, for the sake of anonymity and brevity. I do not believe I am 'allowed to pay five weeks instead of two months', as I have stated in previous posts, I am willing to pay. There was ambiguity in my understanding of certain terms and I came here for some clarity.

    Thank you for those who provided some of that and the matter was resolved today anyway. All good.
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    Wowzers, someone isn't happy, are you secretly my landlord ;)

    There is a lot I haven't disclosed here, for the sake of anonymity and brevity. I do not believe I am 'allowed to pay five weeks instead of two months', as I have stated in previous posts, I am willing to pay. There was ambiguity in my understanding of certain terms and I came here for some clarity.

    Thank you for those who provided some of that and the matter was resolved today anyway. All good.
    ???

    if you are referring to my post please read it again .... I did not write the words you are putting in quotation marks. I said 5 weeks notice, I did not say or write 5 weeks rent. You yourself went to some length to explain that you are fully aware it is 2 months notice, yet you chose to emphasise the shorter notice you gave. My post drew attention to the fact such an action can have repercussions. Why you regard that as a comment on happiness is a mystery.
  • angryparcel
    angryparcel Posts: 926 Forumite
    Yes, this seems to work in my favour, thank you. Basically, the license states that 'This license can be ended by either party by giving to the other no less than two months notice, during which period the Licensee must maintain the rental payments in full'.

    I am giving five weeks notice. I also pay weekly, so 'two months notice' could be anything between 8-10 weeks. Obviously, if I have to pay eight weeks, I will have to do so, but I start the new job in five weeks and I will not have funds to pay for three weeks extra rent. I absolutely appreciate that if I have to, I will. I cannot gauge how the Landlord will take the news, he is a bit of a mixed bag.
    Reads what i have highlighted

    No less than 2 months notice is at least 8 weeks, so you giving 5 weeks notice is NOT giving the required notice as per your licence, so regardless if you start a new job in 5 weeks you will have to give a min 8 weeks notice.
  • martindow
    martindow Posts: 10,566 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Glad it's been resolved - did the LL accept your 5 weeks notice?

    I would have worried whether legally you had given notice at all. The letter you sent giving 5 weeks notice does not seem to be valid to end the contract. Your LL could well have chased rent until he received a letter giving the correct notice. You could have been owing a lot more than three weeks rent.

    All academic now it seems.
  • Because people are interested, I shall say that it was fine and I'm not going to spill all, but yes, it was accepted and everything is amiable. I'm now proceeding to close down the business in every other way.

    Thank you for the help, I do appreciate it.
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