Expert advice for Licence to Alter

What is a Licence to Alter and who does it affect?

A leasehold owner (typically of a commercial unit or a flat in a multi-apartment building ) proposing structural or material changes to their property will generally require the consent of the freehold owner under the terms of the lease. Leaseholders will typically be required to obtain a Licence to Alter before modifying their property and these often take the form of legal agreements drafted by Solicitors. This allows freehold owners to protect themselves against potential losses and ensure the works won’t adversely affect other residents in the building.

Whether you are a freehold owner or a leaseholder, Squarepoint Chartered Surveyors has the expertise to guide you smoothly through the process.

Depending on the terms of the lease, freehold owners should often consent to the proposed alterations, provided the leaseholder agrees to reasonable terms and clearly outlines the proposed works. Obtaining a Licence to Alter can often be a lengthy and complicated process, and it is important to factor this into timescales for undertaking work and ensure you are getting good advice and guidance.

Examples of works that may require a Licence to Alter:

• Structural alterations i.e. the removal of load-bearing walls or the formation of new openings
• Changing window units if not demised to the flat
• Alterations to or installing additional bathrooms or WCs
• New heating installations – i.e. forming a new penetration to the external wall for a boiler flue
• Changes floor finishes – i.e. switching from soft floor coverings such as carpet to wood flooring

 How Squarepoint can assist freehold owners – 

We can review the lease terms and covenants relating to the Licence to Alter as well as act as an intermediary between the freeholder and leaseholder. We can also undertake an inspection of the building and review the proposed works before they commence and ensure they are appropriately designed and advise on any relevant clauses or requirements of the License to Alter.

We can also undertake inspections during and at the end of the works to ensure that the alterations are completed according to the Licence to Alter terms and that all relevant documentation has been obtained.

The benefits of our services:

• Gain a comprehensive understanding of the proposed works
• Protect your building and any of the other leaseholders
• Ensure the leaseholder complies with the licence to alter agreement

How Squarepoint can assist leasehold owners –

Freehold owners can sometimes place an obligation on the leaseholder to obtain an independent report of their proposed works to form part of the Licence to Alter agreement. We will review the lease terms and covenants relating to the proposed works and provide a clear and concise report that summarises your proposals. We will advise you if there are any works that may not be permitted under the terms of the lease and work with you and the freehold owner to reach an agreement on the proposed works. We can also advise on any relevant clauses or requirements that get added to the Licence to Alter agreement to ensure it is a fair agreement and that both parties fully understand any requirements.

We can also provide a ‘sanity’ check of your proposals before you submit them to a freehold owner to ensure that your submission is clear and does not contain any items likely to be refused by the freehold owner.