Licence for Alterations for Apartment

[edit] Do I need a Licence for Alterations?

As an apartment/flat owner, you have likely heard of a Deed of Variation. We find many property owners are confused about the difference between this Deed and a Licence for Alterations for an apartment. They are actually part of the same process. Getting a Deed of Variation and Licence for Alterations for an apartment both are same.

Even though you purchased the apartment and have a long leasehold interest, meaning you own the property, you will be bound by the lease terms, both from a legal perspective and contractually, your ownership of the lease will expire and revert to the Freeholder upon the expiration of your lease. This means you cannot undertake property changes as a Leaseholder prior to obtaining consent from your Freeholder.

[edit] What If I don’t have a licence for alterations?

“What happens if you didn’t realise that you required the permission of your freeholder prior to making changes?”

If you are a tenant with a particularly long lease, it is unlikely the landlord would claim a fundamental breach of contract in an attempt to terminate your contract. Over the years, a frequent outcome is the courts awarding damages to the landlord, these large costs are best avoided, the simple way to avoid this is ensuring you have a licence to alter in place.

A common issue that arises, when the leaseholder puts the property on the market is that during the conveyancing, a missing licence to alter will be flagged, as a leaseholder, you have two options, seek a retrospective licence to alter or provide indemnity insurance to the buyer. On rare occasions, the freeholder could inform your mortgage provider, which can cause issues.

[edit] Types of changes likely require a licence to alter

Anything that changes the fundamental structure of the property or affects service provisions usually requires a licence to alter.

The most common are:

• Changing windows
• Removing structural walls
• Changing the internal layout of rooms
• Structural changes
• Changing toilet or bathroom locations
• Adding a new heating system or changing an old one
• Flooring changes, i.e. from carpet to wooden floors

The requirement for a licence to alter or licence for alterations will be dependant, on the lease and the clauses within it. The legal lease standard has changed over time, so ensure you are aware of the facts, within your own.

The requirement for a licence to alter or licence for alterations usually surprises flat owners, if you require formal consent, you must ensure that you get good legal advice, as early as possible.

[edit] Related articles on Designing Buildings

• Betterment.
• Building an extension.
• Commonhold
• Conversion.
• Dilapidations protocol.
• Dilapidations.
• F10 notification.
• Freehold.
• How to build a porch.
• Land law.
• Lease Negotiations - Tenants Checklist.
• Leasehold.
• License to alter.
• Property disrepair and landlord liabilities.
• Quantified demand.
• Renovation.
• Rent-free period.
• Repairs and optional improvements.
• Restoration.
• Reversion.
• Sample retail lease.
• Schedule of dilapidations.
• Scott schedule.