Licence to Alter: Avoid Delays When Renovating or Selling

If you own, are buying, or are selling a leasehold flat, making changes isn't always as simple as hiring a builder and getting on with the job. Before knocking down a wall, altering plumbing, or swapping carpets for hardwood, you may need to get formal consent from your landlord through a Licence to Alter.

Carrying out works without your landlord's permission is a breach of your lease, and one which can lead to costly sale delays, forced reinstatement, or even, in serious circumstances, a lease forfeiture.

This guide explains the step-by-step process, typical costs, and your key legal rights, so you know how to handle unapproved alterations before they derail your property transactions.

What is a Licence to Alter?

This is a formal, legally binding agreement issued by a freeholder (landlord) granting a leaseholder permission to carry out alterations to their property. Because a leaseholder only owns the right to occupy the property for a specified period, the freeholder retains a legal interest in the building's structural integrity, safety, and overall value.

Contractual consent vs legal approvals

To avoid costly misunderstandings, be aware of the other approvals you need alongside your landlord's consent:

When do you need it?

Not every home improvement project requires your landlord's permission. Your lease agreement dictates the rules by categorising works based on how they impact the building's structural integrity, communal areas, noise isolation, or neighbouring properties.

Generally, renovations fall into four distinct categories:

How does a licence impact significant works?

If your project falls into a significant works category, carrying out the job without formal legal consent is likely to be a direct breach of your lease. This kind of work includes:

• Internal layout and structural changes: Removing walls or creating new door or window openings.
• Acoustic and flooring alterations: Swapping carpets for hardwood, laminate, or tile floors, especially in upper-floor flats, where hard surfaces are more likely to trigger noise complaints and breach lease acoustic clauses.
• Infrastructure and utility upgrades: Modifying main plumbing systems, altering gas connections, re-routing heating pipework, or updating electrical mains.
• Property extensions and boundary changes: Extending upwards into a loft space, converting a cellar, or altering a demised garden area.
• External fixtures: Installing balconies, satellite dishes, external flues, or air conditioning units.
• Telecoms and works that impact EPC ratings: Making small holes to run telecommunications/fiber optic cabling, or installing energy-efficient upgrades that alter the property's Energy Performance Certificate (EPC) rating.

Understanding lease covenants and the law

When your conveyancing solicitor reviews your lease agreement, one of their primary tasks is to analyse the specific wording of your alteration covenants. A covenant is a legal obligation set out in your lease. Depending on how your lease was originally drafted, alterations generally fall under one of three covenant types:

Statutory protection: Section 19 of the Landlord and Tenant Act 1927

If your lease contains a standard Qualified Covenant (prohibiting changes without consent), statutory law intervenes to protect leaseholders.

Under Section 19 of the Landlord and Tenant Act 1927, where a lease contains a covenant against making improvements without landlord consent, the law automatically implies that consent cannot be unreasonably withheld or delayed.

The step-by-step process to securing your licence

Securing a licence involves navigating both legal covenants and practical building considerations. While the prospect of dealing with freeholders, surveyors, and legal contracts can seem daunting, following a structured process helps prevent unnecessary delays, keeps professional fees under control, and protects your project timeline.

Confirm the exact type of covenant that is governing your leasehold property. Contact an experienced conveyancing solicitor before spending significant funds on detailed architectural or structural plans.

Gather comprehensive documentation about your proposed project. This can include professional architectural drawings, structural engineer calculations, method statements, acoustic insulation details, and a clear scope of the works.

Send a completed application package formally to the freeholder (landlord) or the appointed managing agent.

The freeholder will typically instruct their own structural surveyor and solicitor to review your proposed works. This ensures building safety, structural integrity, and adequate protection for neighbouring flats.

The freeholder's solicitor drafts the legal agreement. This document lays out essential working conditions, including:

• Permitted working hours and noise limitations
• Dust and debris controls, waste removal, and skip placement permissions
• Structural protections and mandatory public liability insurance cover

Secure all necessary local authority permissions, including Planning Permission, Building Regulations approval, Listed Building Consent, or Party Wall Awards.

These are completely separate from your landlord's contractual permission, and you must secure both before physical works start.

Once both parties sign and execute the Licence to Alter, and all legal/surveyor fee undertakings are paid, physical work can begin.

Once the alterations have been completed, the freeholder's surveyor conducts a final inspection to confirm that works strictly comply with the approved plans before issuing a final sign-off.

When is a Deed of Variation also needed?

While a Licence to Alter grants contractual landlord permission to carry out physical works within your property's existing legal boundary, it does not alter the core legal terms of your lease.

If your planned alterations extend beyond your original property boundary, alter shared rights or change your lease terms, a Deed of Variation is required in addition to the licence. This involves work such as loft conversions, cellar extensions, and changes to service charge. Unlike the licence, the Deed must formally be registered at HM Land Registry.

How unapproved works can cause conveyancing delays

Unapproved alterations are one of the most common causes of conveyancing delays in UK property transactions. When buying or selling a leasehold flat, any past physical modifications made without the landlord's consent can stall or derail the sale entirely.

If it is identified that there are unapproved works, it can:

• Constitute a Breach of Lease: Carrying out significant structural or layout changes without a formal Licence is a direct breach of lease covenants.
• Layout mismatches and enquiries: If the buyer's conveyancer or surveyor spots removed walls, updated plumbing, or loft conversions that aren't on the original lease plan, they will immediately raise formal legal enquiries.
• Mortgage lender objections: Most lenders will refuse to release funds for a property with an unresolved lease breach until formal landlord consent or title indemnities are secured.
• Retrospective Licence to Alter: Sellers may need to apply retrospectively for permission. Freeholders can charge substantial survey/legal fees or inspect the property before granting.

Costs and financial responsibilities explained

The general legal principle is simple: the leaseholder is responsible for paying all reasonable costs associated with the application process. This means that, in addition to funding your own renovation work, you must cover both your professional expenses and the reasonable costs incurred by the landlord for reviewing and approving your plans.

Here is a full breakdown of the costs a leaseholder is expected to cover:

Before submitting an application, you will need to pay for qualified professionals to draft legal and technical plans:

• Architectural and engineering fees: Professional drawings, structural calculations, method statements, and risk assessments.
• Conveyancing solicitor fees: Legal advice on your lease covenants, preparing fee undertakings, and reviewing the final Licence to Alter document.

The freeholder is entitled to recover reasonable costs so they are not out of pocket for considering your request.

• Freeholder's legal fees: The cost for the landlord’s solicitor to review your application, draft the legal agreement, and handle execution.
• Freeholder's surveyor fees: Costs for an independent surveyor to examine structural calculations, inspect existing plans, and perform a post-completion inspection.

Separate from landlord consent, you must also pay for any necessary legal approvals or protections:

• Building control and local authority approvals: Fees for Building Regulations inspection and sign-off, Planning Permission, or Listed Building Consent.
• Party Wall Agreements: Surveyor fees for issuing notices or securing Party Wall Awards if works affect shared structural walls.
• Indemnity insurance and security deposits: Premium costs for required insurance policies or a security deposit requested by the freeholder to cover potential damage to common areas.

Resolving past unapproved works

If a seller discovers past works were completed without consent, they typically have two main legal pathways:

Retrospective Licence to Alter

The seller applies to the freeholder for formal approval after the works have already taken place. Freeholders are not legally obligated to grant retrospective consent quickly. Often, they require an independent surveyor inspection at the seller's expense to verify structural safety before issuing consent.

Absence of Landlord Consent/Building Regulations Indemnity Insurance

This involves an insurance policy designed to protect the buyer and mortgage lender against potential financial losses if the freeholder takes enforcement action in the future. This policy serves strictly as a financial safety net and does not legally cure or legitimise the underlying lease breach.

The indemnity insurance only remains valid if the freeholder is not notified of the breach. If a seller or buyer approaches the landlord to ask about consent, indemnity insurance is automatically invalidated. Therefore, you should always consult your conveyancer before contacting a freeholder about past alterations.

What can a freeholder do if unauthorised works are carried out?

If a leaseholder carries out unauthorised works and fails to obtain retrospective consent:

• Lease forfeiture: The landlord can initiate forfeiture proceedings to terminate the lease.
• Forced reinstatement: The landlord can legally compel the leaseholder to reinstate the property to its original condition at the tenant's expense.
• Legal costs: The leaseholder will be liable for the landlord's legal and survey costs incurred in enforcing the lease.

Buying or selling a leasehold flat with alterations?

Unapproved alterations are one of the most common reasons leasehold sales can stall or even collapse. Whether you need a Licence to Alter, are a seller seeking retrospective approval, or are a buyer looking to protect your mortgage lender with indemnity insurance, our experienced conveyancing solicitors can help keep your transaction moving safely and smoothly.

Speak to our specialist conveyancers today to see how we can help.