Licence for Alterations

Under most residential leases – even ones that have 150 or even 999 years to run – the leaseholder will need to obtain consent from their landlord before making alterations, extensions or other major changes to the property. A Licence to Alter is a document that contains written permission from the landlord and sets out all the terms and conditions under which the alterations may be carried out. 

On one level, a Licence for Alterations is a straightforward permission given by a landlord to a leaseholder. However, the document can be more complex than it first appears. Often, we have to take the considerations of multiple parties into account, including the landlord’s surveyor, the local planning department, building control, banks and mortgage companies, and possibly other leaseholders in the building. 

If you’re thinking about making alterations to your leasehold property, then the first step should always be to seek professional guidance. Otherwise, you unwittingly may be breaching the terms of your lease. 

Whether or not landlord’s permission is required depends on the scope of works the leaseholder is planning, and what the lease says. One of the first jobs for a solicitor is to ascertain whether the proposed works do indeed require a Licence to Alter. 

Generally, a long residential lease will contain one of three provisions:

• Alteration is absolutely prohibited. The tenant can still ask the landlord for permission to make the home improvement, but the tenant has no come back if the landlord says ‘no’.

• Alteration is prohibited except with the landlord’s consent.

• Alteration is prohibited except with the landlord’s consent which must not be unreasonably withheld. This means the landlord can only refuse permission for a legitimate reason, such as a concern that the works will weaken the building’s structure or decrease the value of the property. However, the scope of what is unreasonable can be quite complex. This is why you should seek legal advice before any works are started, or any permission is given. 

While every lease is different, a leaseholder will not usually need permission for minor home improvements that do not affect the structure or exterior of the building. Some common works that usually will require consent include: 

• Moving structural walls, for example, to change room sizes, reposition door openings or move stairs
• Relocating or adding kitchens, bathrooms or wet rooms
• Extending the property
• Loft conversions
• Doing anything to the exterior of the building – this might capture seemingly trivial alterations like installing a satellite dish, so it is important to check the terms of the lease.

A Licence to Alter stops leaseholders from making unsuitable alterations that could be dangerous or diminish the value of the property. It therefore protects the interests of the freeholder and other leaseholders in the building. 

If a leaseholder carries out unregulated work to the property, they will be in breach of the terms of the lease. This has a number of consequences:

• The landlord can take enforcement action, such as requiring the property to be returned to its original condition
• It may be more costly and time consuming to obtain retrospective consent once the work has been finalised 
• The tenant may experience difficulties in selling the property 
• In some rare cases, the tenant risks losing the lease.

The process will vary from case to case but generally, the leaseholder will provide a description of the proposed works to the landlord including technical information such as plans, drawings and structural calculations. The landlord or its surveyor will consider the impact of the works on the building and decide whether to give consent, and what conditions should be attached to the consent. 

The landlord’s solicitor is responsible for preparing the draft Licence for Alterations. Some of the clauses the landlord might seek include:

• The ability to monitor the works whilst in progress 
• The ability to inspect the works once completed
• An obligation on the leaseholder to obtain planning permission, building regulations approvals and valid insurance
• Restrictions on carrying out the work during unsociable hours so as not to disturb other occupiers in the building 
• An obligations to pay for the repair and redecoration of any communal areas that are affected by the works

The leaseholder’s solicitor can advise on the suitability of these clauses and whether they are reasonable given the scope of the works and the lease provisions. 

The leaseholder is responsible for paying their own costs and also the costs of the landlord in dealing with the Licence to Alter. This includes the costs of the landlord’s surveyor, solicitor and other professional advisors. The tenant also has to pay any subsidiary costs, such as the cost of obtaining planning permission. 

For complex works, costs may rack up quickly as the landlord may have to bring in additional advisors, such as an engineer. The help of an expert legal professional is invaluable in making the process as streamlined as possible, keeping your costs to a minimum. Contact us about our services and pricing today.