A legal document known as a Licence for Alterations authorises a lessee to make certain improvements to their property. The leaseholder is usually responsible for paying the freeholder’s legal fees to draft the contract, which contains the terms and conditions of the agreement. In this article, Licence for Alterations in Commercial Property, we take a look at the process and mechanism involved.
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When would you need a licence for alterations?
The majority of leases forbid tenants from altering the interior components of the building or doing structural work without first obtaining formal permission. This is due to the fact that tenants do not own the property, and the landlord will want to have some control over what occurs there in order to safeguard their investment and make sure they can rent it out again without encountering many issues in the future.
Certain leases demand licences for alterations, even if they only involve extremely modest repairs that affect the property’s EPC rating. It is always a good idea to have your commercial property solicitor review your lease to find out exactly what may be done with the landlord’s permission and what cannot.
Having a permission to make changes means you won’t have to worry about breaking your lease by doing unlawful work. A well-written and comprehensive licence ensures that there are no questions later on about what was allowed at the time. It fosters positive relationships and mutual trust between tenants and landlords.
Does the licence need to be registered?
Sometimes a Deed of Variation is required, especially if the modifications include major adjustments to the property’s plan or structure.
A Deed of Variation might need to be registered with the Land Registry in some situations, even if a Licence for Alterations normally does not. The choice to register the Deed of Variation would be based on a number of variables, including the type of alterations, the Land Registry’s particular criteria, and any relevant practical or legal issues.
How do you apply for a licence?
First and foremost, you must be very clear about the specific modifications you intend to make to the Property. Once you’ve determined what this is, you’ll need to create some drawings that illustrate how the work you wish to do has changed the property. Technical details on the work’s execution and details on things like the materials you’ll be employing are frequently also helpful. To make sure it is accurate, you might need to discuss this with your building contractor or architect, if you are hiring one.
The details of your lease and the work you intend to conduct will ultimately determine the content of your application for approval, but you should prepare all the paperwork to make it as simple as possible for your landlord to review and decide.
The documents will be used by the landlord to communicate with their surveyor and determine whether the works are appropriate and suitable for the property. They could provide a simple set of heads of terms that outline the agreements reached by the two sides. This facilitates the drafting, negotiating, and verification of the documentation by commercial property solicitors to ensure that it aligns with the agreement.
Assuming the landlord is in agreement, he will give his lawyer instructions to get the licence for the changes ready. At this time, you should also hire a lawyer to review the licence and make sure it satisfies your requirements.
The licence itself will typically include a written description of the work that specifies exactly what is permitted, together with the original application papers (the plans, drawings, and technical data). In addition, it will outline the tenant’s and their contractor’s responsibilities regarding health and safety regulations, what has to be done throughout the project, and who is responsible for paying the licence fees. In addition to obligations to show consideration for other building occupants and/or nearby residents, there can be insurance requirements specific to the construction.
It is crucial to remember that obtaining a licence for modifications does not absolve you from obtaining planning and building control consents when necessary. In fact, the licence will frequently explicitly state that the tenant is in charge of obtaining these consents.
It will also specify if, at the conclusion of the lease term, the works must be taken down and the property restored to its original state. According to the majority of leases, landlords are not allowed to unjustifiably refuse or postpone their approval to any works that the lease requires. Therefore, there won’t usually be an issue and your works will be accepted.
The landlord has the right to refuse requests for changes to a lease that specifically prohibits certain types of alterations (such as structural works), and this right will be considered fair. The landlord is entitled to have their legal fees paid (within reason) by the tenant making the application so you may be asked to pay this in addition to your own legal fees. Sometimes they will also ask you to pay their surveyor’s costs. In creating the technical blueprints and specifications for the landlord’s decision-making process, you might also have to pay for them yourself.
How we can help
We have a proven track record of helping clients draft licences for alterations. We will guide you through the process and ensure all checks are carried out swiftly and efficiently and we firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.
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How to Contact Our Commercial Property Solicitors
You need to be well informed about the issues and possible implications of a licence for alterations in commercial property. However, expert legal support is crucial in terms of ensuring a positive outcome to your case.
To speak to our Commercial Property solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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