If you lease/rent a property and want to make changes to it, you may need to obtain a Licence to Alter from the landlord before getting started. This is to protect both the tenant and the landlord by ensuring any changes are safe, lawful and do not devalue the property.
Most lease agreements restrict what the tenant can do in terms of changes to the property. If you do something beyond these restrictions, even if the work is good quality, you may be in breach of contract. From this, you may face legal action and have to seek a retrospective licence, or alternatively stop works, undo the changes and cover the landlord’s legal costs.
At Trinity Rose, our team of Chartered Surveyors are here to help both tenants and landlords with advice around alterations. First, let us find out more about Licences to Alter and when they are needed…
What is a Licence to Alter leasehold property?
A Licence to Alter is the formal, written permission a leaseholder must obtain from their landlord before making changes to a property. They are required for both residential and commercial properties, presuming there are restrictions to alterations noted in the contract (which is usually the case).
Do you need a Licence to Alter?
If you rent a property and want to make changes, check your contract to see what is allowed/restricted. In many cases, whether it is a residential or commercial property, you will need to obtain permission for:
- Structural changes, e.g. extensions, removing walls, etc.
- Non-structural changes, e.g. partition walls, flooring
- Internal layouts and fit-outs for commercial properties such as offices and retail units
- Mechanical and electrical changes, e.g. air conditioning, ventilation or commercial extraction systems
- External works, including new windows and signage
Depending on the wording of your contract, you may also need a licence for changes such as:
- Installing a new kitchen or bathroom
Usually, if you are changing something like-for-like without affecting the structure, then you do not need a Licence to Alter. An example of this case may be replacing carpet with another carpet or repainting a room. However, the golden rule is that a tenant must refer to their contract and if in any doubt, seek professional advice.
Why is a Licence to Alter important?
On the surface, Licences to Alter may sound unnecessary and restrictive, especially if the tenant feels they are making improvements to a property. However, they are legal requirements under most leases for good reason:
- Protect the landlord’s property and investment
- Ensures any works are compliant and safe, e.g. with relevant regulations
- Ensures insurance remains valid
- Avoids breaches of contract and disputes down the line
- Keeps everyone involved in the process, avoiding legal disagreements and retrospective actions to reinstate property
How to get a Licence to Alter
If you decide you would like to make changes to your rented property, first check your contract to see if you need to obtain a Licence to Alter from you landlord. Next:
- Submit a proposal and detailed plans to the landlord. It is helpful to obtain surveyor reviews with drawings and specifications.
- The landlord will review the proposal with their surveyor and solicitor and may request further details.
- There may be a stage of negotiating conditions.
- The licence is granted (usually with conditions), it is signed and added as a s supplemental document to the lease. Work may begin.
How surveyors can help
Whether you are a tenant or landlord of a residential or commercial property, surveyors are helpful when it comes to Licences to Alter. As impartial professionals experienced in this area, we can:
- Advise landlords and tenants
- Review proposals and specifications
- Ensure compliance with lease terms
- Protect our clients’ interests
Conclusion
While Licences to Alter may seem like another hoop to jump, they are extremely important to protect all parties, ensure quality works and avoid costly confrontations down the road. If you are a tenant or landlord, it is a good idea to seek professional advice to make sure your interests are protected, and any decisions remain within your shared contract.
If you have any questions or need support with an application, we are here to help. At Trinity Rose, our team of RICS Chartered Surveyors have years of experience in this field. Please get in touch to find out more.