A Brief Guide to ‘Licence to Alter’
If you are a tenant or a leaseholder and are planning to make alterations to your premises, you should know that you will need to take consent from your landlord or a freeholder.
Without a license to alter, if you proceed to make changes or modifications to your property, you may be subject to legal action from your landlord or the owner of the land.
If you are a leaseholder, you should always remember that you are on a contract under certain terms and conditions, and you will not have any right to make any changes to the house you are living in. In case you really want to, then you will have to seek consent in the form of a licence to alter from the freeholder or the owner of the property.
What is a Licence to Alter?
A licence to alter is a legal document/application filled by a leaseholder seeking consent from the landlord to make alterations or any renovations to the property.
For example, if you are living in a property on a lease term and want to extend, renovate, or make any changes to the leasehold property, you will need a ‘licence to alter’. If a freeholder or landlord provides consent to the application, you then officially have obtained permission to alter the property as intended.
Why is a ‘Licence to Alter’ Necessary?
A licence to alter is necessary to protect the interests of both the landlord and the leaseholder when changes are made to a leasehold property. This ensures compliance with lease terms, preventing arising disputes and thus maintaining the integrity of the property.
If you are a tenant or a landlord or a freeholder of any property, it is vital that you be aware of the following –
1. Ensures Compliance with Lease Terms
Many lease terms mandate obtaining a licence before making any alterations to the property. Without obtaining consent from the landlord in the form of a licence, the leaseholder could be violating the lease terms and will be subject to legal action and hefty penalties or may even be ousted from the lease agreement.
2. Protects Freeholder and Leaseholder Interests
A licence to alter application establishes an agreement between the freeholder and leaseholder outlining the terms and conditions regarding alterations to the property. It ensures that both the freeholder and leaseholder are aware of their rights and obligations, thus preventing potential disputes.
3. Maintains Property Integrity
A licence to alter also ensures that any changes or alterations to the property do not in any way negatively affect the structural integrity or lower the value of the property. The document is also used to protect the interests of other leaseholders residing in the building, if any.
4. Affects Property Value
If in the future, the leaseholder property is to be sold, then a potential buyer may check or request for details about the property history to know whether there is any history of breach of compliance or violation of laws.
If a breach is found, chances are that the buyer may withdraw from buying the property, which again leaves a bad reputation and negatively impacts the property value.
5. Protects other Leaseholders
In case the property in question is on the same premises along with many other properties, then the other properties may be adversely affected by it. A licence to alter thus is important to protect the interests of other leaseholders in the premises.
What Properties are Subject to ‘Licence to Alter’?
Leasehold properties, especially flats or apartments, are typically subject to a licence to alter. If you are a freeholder, you generally do not require a ‘licence to alter’ unless you are living in one of the ‘Great Estates’.
What Kind of Alterations Require a ‘Licence to Alter’?
- Changes to the internal layout of the house
- Extensions planned on the property
- Removing or replacing a load-bearing wall
- Installing a central heating system or any temperature regulation system
- Modifications done to a floor
- Replacing windows
- Fitting a new kitchen or a bathroom
What Details does a ‘Licence to Alter’ Application Include?
The details mentioned in a licence to alter application usually are concrete yet specific at the same time.
The following information is included in a licence to alter document –
Scope and type of alterations
A licence to alter application should clearly define the number and type of alterations the landlord permits.
Details of the Drawings & Plans
To ensure more clarity, the document will have spaces to remit details of the plan and drawings, along with specifications of the alterations, including materials. If the alteration involves structural work, the leaseholder should include its details.
Time Duration
Concise details about the timeframe within which the leaseholder plans to start and complete the alteration should be mentioned. There are chances that the landlord may not oblige to permit if the leaseholder fails to start the work within 6 months from the start of the licence.
Planning Approvals
The leaseholder is also expected to submit approvals from the planning department and the building regulation control department in case the plan mandates such approvals.
Timely Inspection by the Landlord
Most licence to alter applications permit the landlord to have timely inspections of the alteration to check on the project’s safety and progress.
Some ‘licence to alter’ documents also include terms that indemnify the landlord against any kind of loss incurred by the leaseholder as a result of the alteration.
What If a Leaseholder Breaches the Consent?
If you are a leaseholder and have carried out alteration work without a licence to alter, you may be subject to the following action by your landlord –
- Your lease agreement will be terminated with immediate effect, and the landlord will take control of the premises.
- You may have to reinstate the property back to its original state and, of course, at your own cost.
- The landlord may seek compensation or damage redressal from you.
What is the Cost of Applying for a ‘Licence to Alter’?
The cost for a licence to alter a property can vary significantly across various boroughs and cities across the UK and depends on the complexity and scope of alterations. It generally requires a fee that covers professional and legal expenses (in case you need legal advice).
- Surveyor Cost: If you are a leaseholder planning structural alterations to the property, then you may be required to hire a surveyor to assess the impact of the structural work.
- Solicitor: If you want legal advice or help to manage the licence to alter application, then you may need to hire a solicitor. The fee to hire a solicitor may range from £650 to £1250 plus VAT.
- Administrative Fee: Different councils may charge a different fee. If the property in question is a flat or an apartment, then the fee may vary from £150 to £450.
Conclusion
In a way, a ‘licence to alter’ is a great opportunity for leaseholders to make changes to the property and realise their dream of living to their imagination. But you should always remember that you may face legal setbacks and adversities when you breach the licence to alter and plan to carry out alterations without a freeholder consent.
At Extension Architecture, we can advise you on various types of planning regulations and legal mandates, such as the ‘licence to alter’, whether you live in a flat, an apartment, or a bungalow. If you are a freeholder or a leaseholder of a residential or commercial property and are seeking advice on a licence to alter, feel free to reach out to us.
