Licence to alter

Occasionally leases prohibit any alteration. In those circumstances the landlord must always be asked in advance of any work being done.

Other examples where alterations are likely to be prohibited include extending into roof spaces, changing windows, incorporating areas of common parts, or adopting flat roof areas for use as terraces or balconies. In most cases a lease will not permit you to do such work without obtaining permission first.

When alterations are prohibited absolutely, or where a lessee wishes to extend the flat beyond the extent of the demise, it is not uncommon for a premium payment to be demanded by the landlord in return for giving permission. Sometimes the calculation of the premium payable can become a major point of dispute.

Any party to such negotiations would be wise to take specialist advice from experts with experience in dealing with such matters, who will be able to advise them in calculating and negotiating levels of such premiums.

It is not uncommon for a lease to permit some limited alterations. However, even simple alterations can create problems. For example, alterations to the arrangement of rooms can result in a contravention of building regulations occurring which will be a breach of lease.

There have been a number of examples of very expensive litigation that have followed from alteration works which have gone beyond what is permitted.

There is a current trend for hardwood floor coverings. Many older leases prohibit this type of floor and the lease must always be checked carefully before installing them.

Even where an alteration is permitted, there will be conditions that must be complied with to protect the property and other lessees from poor or dangerous work. All building work has to comply building regulations, electrical and gas safety standards, health and safety procedures and building codes of practice. Remember a lessee can be legally liable for damages arising from poor quality or unapproved alterations.

While it’s tempting to save money, the cost of dealing with disputes or unsatisfactory work once it has been completed will almost certainly outweigh the cost of carrying out the work properly in the first place.

Making alterations to your leasehold property need not be problematic but it does need to be carefully planned, and serious thought needs to be given to the lease obligations to the landlord and other leaseholders.

Failure to plan the work with these constraints in mind can lead to expensive litigation which, as well as being very costly, can impact not only on the use and enjoyment of the property but also its value in the longer term.