What is a Licence to Alter? Getting Permission to Improve Your Leasehold Flat

What is a Licence to Alter?

A licence to alter is a formal legal document in which a freeholder (or superior landlord) gives their consent to a leaseholder carrying out alterations to their leasehold property. It is required wherever the lease contains a covenant prohibiting alterations without the landlord's prior consent, which is the case in the vast majority of residential leases.

The licence records the scope of the approved works, any conditions attached to the consent, and the obligations of the leaseholder regarding how the works must be carried out, inspected, and documented. Without a valid licence to alter where the lease requires one, the leaseholder is in breach of covenant, which can cause serious problems when selling or remortgaging.

When is a Licence to Alter Required?

The starting point is your lease. Most leases distinguish between:

• **Absolute prohibition**, the leaseholder may not carry out works of a certain type under any circumstances (rare, but occasionally applies to structural works)
• **Qualified prohibition**, the leaseholder may not carry out works without the landlord's prior written consent (the most common drafting)
• **No restriction**, some leases are silent on minor internal alterations, though this is unusual

The Application Process

1. Review your lease

Read the alterations covenant carefully. Note whether it is an absolute or qualified prohibition and what categories of works are affected. If you are unsure, ask your solicitor.

2. Notify your freeholder or managing agent

Write to your freeholder or managing agent setting out the proposed works in detail, providing drawings and a specification prepared by your architect or contractor.

3. The landlord's surveyor

In most cases, the freeholder will instruct their own surveyor (usually a RICS-accredited building surveyor) to review the proposals and report on any structural, acoustic, or technical concerns. The leaseholder is ordinarily required to pay the freeholder's reasonable surveyor's and solicitor's fees as a condition of the licence being granted, this is standard market practice and is typically required by the lease.

4. Licence negotiation and execution

Once the surveyor is satisfied, the freeholder's solicitor prepares the licence document. Common conditions include:

• Works to be carried out in accordance with approved drawings only
• A requirement to obtain building regulations approval
• A reinstatement obligation at the end of the lease term (sometimes negotiated out)
• A post-completion inspection by the freeholder's surveyor
• Indemnity insurance where structural risk is involved

The licence is executed as a deed by both parties before works commence.

Consequences of Proceeding Without Consent

Carrying out alterations in breach of a lease covenant, without a licence to alter where one is required, constitutes a breach of the lease. The consequences can include:

• The freeholder serving a breach notice and demanding reinstatement at the leaseholder's cost
• Difficulty selling: buyers' solicitors will raise an enquiry about alterations, and without a licence, a buyer's lender may decline to lend
• Potential forfeiture of the lease in serious cases (though courts rarely order forfeiture for a single breach if the leaseholder remedies it promptly)

If works have already been carried out without consent, it is possible to apply for retrospective consent, a retrospective licence to alter. This is sometimes referred to as "regularisation." Freeholders may impose additional conditions or higher fees for retrospective applications.

Property Passport UK records property data and document history where available, helping buyers identify properties where historical alterations may need to be investigated before proceeding with a purchase.