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Short-term lettings

08 November 2016

If you are looking for new short-term premises for your business, did you know that there are actually a whole range of legal forms a short-term letting can take? This Inbrief sets out the different options available for short-term occupation of business premises and considers the advantages and disadvantages associated with each.

Decisions, decisions...

When looking to move into new premises many business owners will, in an ideal world, want a ‘belts and braces’ style lease, clearly setting out the key provisions such as rent and duration (known as term) and offering a high degree of security.

However, a formal lease may not be the most appropriate option if the premises are only required for a short period. Given the costs associated with drafting and negotiating a full lease, many landlords and indeed tenants may be unwilling to go down this route when cheaper options will suffice.

This note considers the following options:

  • Leases
  • Licences
  • Tenancies at will
  • Tenancies
  • Group sharing arrangements at regular intervals
  • Disadvantages of a lease
  • A lease (even for a short term) tends to be a long document and it takes time to negotiate terms, meaning higher legal costs
  • Obligations may be quite wide-ranging with the inevitable attendant liabilities and costs, as the landlord will pass full responsibility for the premises to the tenant
  • Stamp Duty Land Tax (SDLT) may be payable on the lease
Please click 'download files' to read the full Insight.

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