Licence for Alterations

Specialist lease extension solicitor, Callie Tuplin, takes a look at elements of a Licence for Alterations.

Many leasehold properties have restrictions placed upon them; one common restriction is limiting the alterations a tenant can make to their flat or leasehold house. Leases commonly only allow for limited works to be undertaken without consent of the landlord and may expressly prohibit the works entirely, particularly if they are structural in nature. In the instances of redevelopment where approval is required or there is a ban on the change, you may require a Licence to Alter.

What is a Licence to Alter?

A Licence to Alter is a contractual agreement outlining the formal consent granted by your landlord. It confirms that you can make the agreed changes to your leasehold property and outlines any conditions of the consent.

When do you need a Licence to Alter?

It may be necessary for you to obtain a Licence to Alter but it depends on the wording of your lease. The general rules are:

• If the lease expressly allows the alterations, you can undertake the works without a Licence to Alter.
• If the lease is silent, you are able to make the improvement without a Licence to Alter.
• If the lease allows the non-structural alterations, but not structural alterations without consent, you can undertake the non-structural alteration without obtaining consent from your Landlord.
• If the lease allows alterations but only with the Landlord’s consent, you will be able to make the changes to your property but a Licence to Alter will be required (depending on the wording of the clause). Your landlord must however be ‘reasonable’.
• If there is an express ban, you would need to request your landlord’s consent in this situation and your landlord may provide their consent under any terms that can be agreed. There is no obligation on them being ‘reasonable’. You also cannot force your landlord to agree to these works - it is entirely in their discretion. If your landlord does agree to this work and grants their consent, a Licence to Alter is a necessity to undertake any works.

Where consent it required from your landlord, it is beneficial to get the consent in a formal Licence to Alter, there can then be no dispute as to the permissions granted and the terms agreed.

Retrospective Licence to Alter

You should obtain a Licence to Alter prior to commencing work on your property. If you do not obtain formal consent prior to undertaking any work, you could be in breach of your lease and your landlord may be able to take legal action against you. A retrospective Licence to Alter may be negotiated with your landlord if you have already started or completed works that are either prohibited or consent was required. Retrospective consent is the last resort and you cannot force your Landlord to agree to this. The landlord may also demand payment of a premium as compensation for the breach.

Is a Licence to Alter Expensive?

A Licence to Alter is a non-contentious agreement, and as such, a landlord is not expected to cover their reasonable professional fees in granting permission. Therefore, the tenant will be liable for these fees. This means the tenant will be expected to pay for their legal costs, their landlord’s legal costs and any other service used in connection such as a surveyor.

If the lease states that the landlord cannot act ‘unreasonably’ in providing their consent, you should not be expected to pay a large premium for the consent being granted albeit they can demand a reasonable premium. If, however, there is an absolute prohibition, the landlord could charge a premium for giving their approval and the level is unlimited.

Leasehold legal advice

Obtaining a Licence to Alter is beneficial if it is acquired before the works are undertaken. It may seem excessive, but it can save money and disputes in the future.
If you are unsure what work you can and cannot undertake to your property without consent from your landlord, please get in touch and one of our specialist leasehold solicitors can assist. If consent is required, we can guide you through the transaction and ensure you can undertake the work without unreasonable or onerous conditions.

If you are currently experiencing issues with obtaining consent from your landlord to undertake works to your property or they are demanding an excessive premium for giving their consent, our Landlord and Tenant Division within the Dispute Resolution Department can also assist.