The yard licence agreement, explained

Renting a yard does not work like renting a unit, and the paperwork is where you notice it first. A commercial lease is a legal interest in land: heads of terms, solicitors on both sides, a term of years, and a dilapidations bill waiting at the end of it. A licence is permission to use a defined space for a monthly fee. That single difference is why you can enquire on a Tuesday and be storing plant on a Wednesday.

It is also the difference the ads in this industry are pointing at when they promise no solicitor fees and no land registry fees. Those savings are real, but they come from the instrument being used — so it is worth understanding what you are getting, and what you are giving up.

Licence versus lease, side by side

The trade-off, stated honestly

A licence gives you speed and freedom. It does not give you security of tenure. A business tenant holding a protected lease may have a statutory right to renew at the end of the term; a licensee does not. For the overwhelming majority of storage customers that is the right way round — you want to be able to leave when a contract ends, not to be guaranteed a right to stay somewhere for a decade. But if your business genuinely depends on occupying one specific site for years, a lease is the correct instrument and you should take proper advice on it.

It is also worth knowing that the label is not decisive. Courts look at the substance of an arrangement rather than what it is called, so an agreement that really does grant exclusive possession for a term can be a tenancy however it is headed. That is a reason to read the document, not a reason to avoid licences.

Five things to check before you sign

1. The space

   Exactly what you are getting and where it is — a bay number, a container, a marked plot. "Space on the yard" is not a specification.

2. Permitted use

   What you may and may not store. Fuel, chemicals and anything hazardous are usually restricted, and you want that clear up front rather than discovered later.

3. Notice, both ways

   Not just how much notice you give, but how much we must give you. A month's notice from you against a week's notice from the operator is not a flexible agreement.

4. Insurance

   Who insures what. You insure your own goods and vehicles; the site security protects the site. Check your policy wording extends to a secure compound.

5. The real monthly cost

   Whether the figure quoted is all of it. Access, gate codes and out-of-hours entry should not be extras — ours aren't.

This is a plain-English explanation of how storage licences generally work in England and Wales, not legal advice. If a lot rides on the arrangement, get a solicitor to look at it. Our own terms are on the terms page and our prices are on the pricing page.