Licence to Alter

Definition

A Licence to Alter is a legal document in which a landlord grants a leaseholder permission to carry out alterations to leased premises. It is usually required for works that are not permitted as-of-right under the lease - particularly structural changes, alterations to building services, or changes affecting the exterior or common parts.

Why it matters

Most leases restrict alterations to protect the building’s structure, services, and the interests of other occupants. Carrying out works without a Licence to Alter can put the leaseholder in breach of covenant, potentially leading to legal action or forfeiture.

The licence sets out the scope of permitted works, conditions to be followed, and often requires the leaseholder to reinstate the property at the end of the lease.

How a Licence to Alter works

1. Application – The leaseholder submits details of the proposed works, often including plans, specifications, and method statements.
2. Landlord’s review – The landlord (and their surveyor/solicitor) assesses the works for impact on structure, services, and other tenants.
3. Conditions – The licence specifies conditions, such as working hours, materials, reinstatement obligations, and any fees or deposits.
4. Execution – Both landlord and leaseholder sign the licence before works begin.
5. Completion – Works are carried out in accordance with the licence, often subject to post-completion inspection.

Examples and use cases

• Commercial lease – Reconfiguring internal walls to create open-plan offices.
• Residential lease – Installing new windows or relocating a kitchen.
• Retail premises – Fitting out a shop with structural or service alterations.

Mini-FAQ

Q: Are all alterations covered by a Licence to Alter?
A: No. Minor non-structural works may not require formal consent - but this depends on the lease wording.

Q: Can a landlord refuse consent?
A: Under UK law, most leases require that consent is not unreasonably withheld, but reasonable conditions can be imposed.