You move into a new property and want to undertake some works to make it into the property you have always dreamed of. You speak to architects, contractors, you even get in contact with a Party Wall Surveyor. However, there is one issue. You don’t own the Freehold, and therefore you can’t conduct any works without first getting the Freeholder’s consent! This is where a Licence of Alterations (also known as a Licence to Alter) comes in.
Simply put, a Licence to Alter is a formal consent given to the tenant (or leaseholder) by the landlord to give consent to carry out alterations to the property (usually a flat) in question.
However, it is not as simple as the landlord (freeholder) just writing a letter to the tenant (leaseholder). There is a process that needs to be undertaken which will enable the tenant undertakes the works lawfully and to the benefit of their demise.
By the end of this blog post I will have given a good description of what this process looks like. But before I address this it is important that we clarify the following;
What works require a Licence of Alterations?
The answer to this question depends upon the exact terms of the lease which will detail exactly what type of alterations the tenant can do and whether they require permission to do so. For this reason, it’s difficult to give a complete list of all the works that will require a Licence of Alterations as it changes on a case by case basis. However, in our experience alterations of structure, the removing of walls, cutting of external walls, installation of heating and sanitary facilities and the changing of windows often require a Licence to Alter.
A lease will describe the provisions given for each different type of work. There are there main types to consider:
Absolute Covenant:
The alteration is prohibited in all cases unless the landlord decides to waive the clause.
Qualified Covenant:
The alteration is prohibited unless the landlord gives consent.
Fully Qualified Covenant:
The alteration is prohibited unless the landlord gives consent, which cannot be withheld without good reason.
If, for whatever reason, the lease makes no mention of alterations then the tenant is free to make alterations at their leisure.
As previously mentioned, when a landlord gives a consent it doesn’t simply come in the form of a letter. In fact, it comes in the form of a document which forms the Licence of Alterations. This begs the question;
What does a Licence for Alterations contain?
There is no strict guideline for what a Licence to Alter must contain, but the following items are common:
- A description of the works, often alongside drawings which show the existing and proposed layout of the property in question.
- Structural drawings, structural calculations and building service drawings and specifications.
- A programme for the works, which gives a rough outline of when each part of the building process will begin and how long it will take.
- Evidence of all insurances, planning permission, building regulation permissions and compliance with the Party Wall etc Act 1996.
The licence itself will announce which works are agreed upon and the conditions those works should be carried under (for example working hours and noise). There will also be mention of the allocation of costs, as the cost of getting the Licence written up is chargeable to the tenant.
Whilst it is the tenant’s responsibility to provide most items included in the Licence to Alter, it is typically the landlord’s responsibility to get the licence written up. The landlord must also provide consent unless they have good reason not to and must also provide a notice to the tenants to let them know whether consent is to be granted alongside the reasons if it is not. All the above must be completed within reasonable time.
To conclude, although a Licence to Alter does contain a lot of documentation and seems complex at first glance, it is in fact a very simple document that exists simply to allow tenants the ability to conduct building works upon their property.
Should you have any more questions, or would like to hire us to help you with your Licence of Alterations matter, feel free to call us for some free advice on 020 8016 5700.
