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2. How Long Will You Stay?

When you occupy premises, there are three kinds of property contract you can sign.

2.1 A licence gives you maximum flexibility, but minimum security.

• Licences usually cover a short period of time - up to two years.
• You, or your licensor, can usually terminate the arrangement at short notice.

2.2 A lease gives you less flexibility, but more security).

• You agree to occupy the premises for a fixed number of years (often up to 25 years).
• You may be liable for the rent for the whole period of the lease, even if you vacate the premises early.

2.3 When you purchase a property, you buy the premises outright and acquire the freehold.

• You can stay in the premises as long as you want.
• Established businesses with spare cash may buy their premises as an investment.