Licence for alterations: Guidance for leaseholders

Many leases contain specific provisions that prohibit or restrict alterations without the freeholder’s consent. These clauses are designed to maintain the integrity and value of the building. If your lease includes such restrictions, failing to secure a licence means you may be in violation, which could lead to enforcement actions, fines, or even the risk of forfeiture of your lease.

In some cases, the lease may be silent on the issue of alterations. While this can suggest that certain modifications are permitted, it’s vital to obtain professional legal advice to interpret your lease accurately. Proceeding without confirmation could lead to disputes later, especially if the freeholder disagrees with your interpretation.

Alterations often increase the value and enjoyment of your property, whether it’s a new layout, structural changes, or enhanced features. A properly documented licence ensures that any improvements are officially recognised and approved, protecting the value of your investment when selling or leasing your property.

The Licence for Alterations sets clear boundaries for the type of work you can undertake. This includes:

• Specific permissions for alterations such as structural changes or significant modifications.
• Timelines dictating when the alterations must begin and be completed.
• Conditions & compliance clauses that mandate adherence to planning permissions, building regulations, and health and safety laws.

This detailed framework helps prevent misunderstandings and protects both the leaseholder and the freeholder from potential disputes.

Without a licence, you may face significant issues when trying to sell or remortgage your flat. Prospective buyers or lenders often require proof that past alterations were authorised to avoid inheriting liabilities. A Licence for Alterations serves as a record confirming that all work was conducted with the freeholder’s knowledge and consent, facilitating smoother property transactions.

The licence will explicitly state what kind of alterations are approved. This could range from minor cosmetic changes to significant structural modifications, such as:

• Removing or adding internal walls.
• Installing new plumbing or electrical systems.
• Changing the layout or extending certain parts of the property.

Having a detailed list ensures that both parties—leaseholder and freeholder—are clear on the scope of permissible work.

To ensure that works are completed in a timely manner, licences often include specific start and end dates. This helps prevent prolonged disturbances to other residents and ensures the project aligns with both the leaseholder’s and the freeholder’s expectations. Adhering to these timelines is essential to remain in compliance with the terms of the licence.

The licence will outline the obligations of both parties during and after the alterations. For leaseholders, this can include:

• Notifying the freeholder of progress and completion.
• Ensuring that the works are conducted in a manner that minimises disruption to other residents.
• Taking responsibility for any damage caused during the alterations.

Freeholders, in turn, are typically expected to review submitted plans and provide consent in a reasonable timeframe.

Licences include conditions that must be met throughout the alteration process. Common conditions may include:

• Using qualified and insured contractors.
• Complying with all relevant planning permissions, building regulations, and health and safety standards.
• Following good building practices to maintain the overall safety and aesthetics of the building.

Failure to meet these conditions could invalidate the licence and expose the leaseholder to legal challenges.

Some licences may contain restrictions to ensure the building’s structural integrity or to protect shared areas and other leaseholders’ interests. This could mean limiting noise levels during specific hours or prohibiting alterations that affect communal services, like heating or water supply.

Finally, the licence will typically include an undertaking that confirms the alterations will comply with all necessary statutes and by-laws. This ensures that the project adheres to local authority rules and broader legal requirements. The licence acts as a safeguard, protecting both the leaseholder and freeholder from potential disputes that could arise from unregulated works.