Commercial tenants often want to adapt premises to suit their business.
Removing partitions, installing new services or changing the layout may appear straightforward, but the tenant’s lease can restrict alterations.
Ignoring those requirements can create problems later.
What is a licence for alterations?
A licence for alterations is a form of landlord’s consent dealing with proposed alterations to a commercial property.
It can set out the works that are permitted and any conditions attached to the landlord’s consent.
The exact legal documentation will depend on the circumstances.
What happens if you carry out works without consent?
The consequences depend on the lease and the nature of the works.
Unauthorised alterations can potentially result in:
- A requirement to obtain retrospective consent.
- A requirement to reinstate the property.
- Dilapidations issues at lease expiry.
- Disputes with the landlord.
- Problems when assigning or renewing the lease.
Can you get consent after the work has been completed?
Potentially.
A retrospective licence for alterations can sometimes be used where works have already been undertaken without the required consent.
However, retrospective consent should not be assumed to be automatic.
The landlord may require information about the completed works and may impose conditions before granting consent.
Why involve a surveyor?
A building surveyor can assist with the technical aspects of the proposed or completed alterations.
This may include reviewing drawings, inspecting the works and identifying building-related matters that should be addressed as part of the consent process.
Legal drafting and landlord/tenant rights remain matters for the appropriate legal advisers.
Stokemont’s advice
Do not assume that because an alteration is minor, landlord’s consent is unnecessary.
Before carrying out works, check the lease and obtain the appropriate advice. If works have already been undertaken without consent, early action may help avoid a more difficult problem when the lease ends.
