In practice, the term licence usually refers to a relatively flexible, short term agreement. Licences should be for less than six months, non-exclusive, and be terminable at short notice (say one month) by either you or the 'licensor', to avoid being treated as a lease (see below). Licence agreements usually have a low initial cost, perhaps a deposit equivalent to one month's rent. Typical licensed premises include small office units or workshops within a larger building, and often include various support services (such as reception and security).
Legally, however, what matters is not whether an agreement is referred to as a licence or as a lease, but what the agreement actually says. Although many licences are relatively straightforward, you still need to satisfy yourself that you understand your rights and obligations before entering into any agreement.
