Published

How to Avoid Being Locked into Long Office Leases

4 person newly refurbished office space

If you've ever sat across from a landlord discussing a 5 or 10-year office lease and felt your stomach drop, you're not alone. As the Office Manager and Director of Leigh House, a boutique serviced office building in Pudsey, Leeds, I speak to businesses every week who are trying to avoid exactly that trap.

The good news is that a long lease isn't your only option anymore. Here's what I've learned from years of watching businesses choose flexibility over commitment, and why I think that shift is only going to grow.

The Real Difference Between a Lease and a Licence Agreement

The first thing to understand is that not all office agreements are the same. A traditional commercial lease typically runs anywhere from 3 to 10 years. That's a significant commitment, especially for a business that doesn't yet know what its next 12 months will look like, let alone the next decade.

A serviced office, by contrast, usually operates on a licence agreement rather than a lease. At Leigh House, that means businesses can sign for anywhere from 3 months up to 24 months. Once that initial term ends, the agreement simply rolls on a calendar monthly basis unless a new agreement is negotiated. No renegotiating a multi-year contract, no scrambling to find a way out, no long notice periods buried in the small print.

That distinction alone changes how a business can plan. Instead of committing to space you might not need in three years' time, you commit to what makes sense right now, with the option to extend, change, or move on when your circumstances do.

A Real Example: The Business That Stayed for Two Years After Signing for Three Months

One of our current tenants at Leigh House is a great illustration of this. They initially signed a licence agreement for just 3 months. Their head office wasn't willing to commit to anything longer at the time, so a short-term agreement was the only realistic option.

That was over two years ago. They're still with us.

What started as a cautious, low-commitment decision turned into a long-term working relationship, simply because the flexibility removed the pressure. They never felt trapped, so they never felt the need to leave. That's the opposite of how a long lease tends to work, where businesses often stay not because they want to, but because breaking the lease is more painful than staying put.

Leigh House Reception Area
Entrance at Leigh House
Suite F11 at Leigh House

Serviced Offices Aren't Just for Startups

There's a common assumption that licence agreements and serviced offices are only suitable for freelancers or early-stage startups, and that "proper" or growing businesses need a traditional lease to look credible. I'd push back on that firmly.

At Leigh House, we've hosted:

  • Freelancers and sole traders needing a professional base
  • Startups in their first few months of trading
  • Corporate teams looking for a Leeds base to work from

And the range in how long they stay is just as broad. We've had tenants here for 3 months, and we've had others here for over 12 years. Flexibility doesn't mean impermanence. It means choice. Some businesses use that choice to stay briefly, others use it to stay indefinitely, on their own terms.

What You Actually Get Included (And What a Lease Doesn't Cover)

One of the biggest hidden costs of a traditional lease is everything that sits outside the rent itself. Utilities, insurance, maintenance, and more all tend to be the tenant's responsibility to arrange and pay for separately.

With a serviced office licence agreement, that changes. At Leigh House, our licence fee includes:

  • All utilities
  • Broadband connections
  • Furniture
  • On-site car parking
  • Refuse collection
  • Maintenance
  • Buildings insurance
  • A reception meet and greet service

That's a significant amount of cost and admin removed from a business's plate before they've even opened the door on day one. For a growing business trying to keep overheads predictable, that matters just as much as the flexibility of the term itself.

What to Watch For If You're Still Considering a Traditional Lease

If you're currently weighing up a traditional lease, it's worth knowing what you're signing up for. Lease terms generally run from 3 to 10 years, a very different commitment from the 3 to 24 month range you'd see with a licence agreement.

Before signing anything long-term, it's worth genuinely asking yourself whether you can predict where your business will be in year 3, let alone year 10. If the honest answer is "not really," that's usually a sign a licence agreement might serve you better than a lease.

Growing, Downsizing, or Moving On: Flexibility Works Both Ways

Flexibility isn't just about avoiding commitment. It's also about being able to change direction without penalty. We've seen businesses at Leigh House grow and take on additional space within the building. We've seen others downsize when they needed to. And we've seen well-established businesses eventually outgrow what we can offer and move on to new premises entirely.

Honestly, that last one is one of the best parts of the job. Helping a business grow to the point where it needs to leave us for something bigger is a genuine win, not a loss.

Why I Think Long Leases Are Becoming Outdated

This is where I'll give you my honest opinion rather than just the facts: I think the traditional long lease model is becoming outdated, particularly since the pandemic.

We've seen a real shift away from fully remote working, with teams coming back together in shared spaces, but often with a hybrid option still in place. That shift doesn't sit comfortably with a rigid, decade-long lease. Businesses need space that can flex with how they actually work now, not space that locks them into decisions made in a very different working world. I believe serviced offices and virtual offices are only going to keep growing because of it.

large historic building in leeds with path and circular driveway

Path Leading to the Front of Leigh House

Why Leigh House Specifically

Leigh House is a Grade II listed building in Pudsey, and that matters for more than just character. The solid, original walls give a level of privacy and quiet that a lot of modern open-plan developments simply can't offer, which matters to businesses that need focused, confidential working space.

We're also right on the doorstep of transport links and local amenities, with plenty of free on-site car parking for tenants, staff, and visitors. If you've ever tried to find parking in Leeds City Centre, you'll know how much of a genuine relief that is.

Keeping a characterful old building like this alive and busy, while giving businesses a genuinely flexible way to work from it, is what we're all about at Leigh House.

Ready to Explore Flexible Office Space in Leeds?

If you're currently facing the prospect of a long lease and wondering whether there's a better way, get in touch with us at Leigh House. Whether you need space for 3 months or you're planning to stay for years, we'd love to show you around and talk through what would actually work for your business.

Joann Fitzpatrick - Geodis FF United Kingdom Ltd

These offices are in a beautiful Grade 2 listed building situated in mature grounds with plenty of onsite parking for both tenants and visitors. They are close to local amenities including shops and a supermarket, restaurants (open at lunchtime as well as teatime). Bus stops for buses to/and from Leeds/Bradford/Pudsey are approx. 2 minutes walk and Pudsey train station is approx. 15 minutes walk away also so getting to and from the building is easy whether by car or public transport.

Joann Fitzpatrick, July 2026

Lease or Licence? Get in Touch with us at Leigh House and we will be happy to talk through your requirements to help your business.

Can we help you?

Share this article

More Articles from Leigh House

Loading more articles. Please wait

Our Contact Details
Contact Us

Leigh House Facilities Management Ltd

Leigh House, Varley Street, Pudsey, Leeds, West Yorkshire, LS28 6AN

Opening Hours

Monday to Friday - 8am til 6pm

Closed Weekends & Bank Holidays