Planning to make changes to a commercial property? Before the contractors arrive and work gets underway, there’s one important question to ask: do you have the landlord’s permission?
Whether you’re fitting out a new office, refurbishing a shop or installing a mezzanine floor, making alterations to commercial premises isn’t always as straightforward as you might expect.
Many commercial leases place restrictions on the changes tenants can make to a property. And overlooking those restrictions can lead to unexpected costs, delays and potentially a breach of the lease.
That’s where a Licence for Alterations comes in.
What is a Licence for Alterations?
A Licence for Alterations is a formal legal agreement between a commercial landlord and tenant, giving the tenant permission to carry out specific works to a leased property.
It sets out exactly what has been agreed, any conditions attached to the works and the responsibilities of both parties.
For example, a business moving into new premises might want to install internal load-bearing or non load-bearing walls and partitions, upgrade electrical systems or completely redesign the interior to suit its operations.
Depending on the terms of the lease, these changes may require the landlord’s written consent before work begins.
A Licence for Alterations provides that consent and helps protect both parties by documenting what is permitted.
Do you always need permission to make alterations?
Not necessarily. It depends on what your commercial lease says and the type of work you’re planning.
Some leases allow minor, non-structural changes without formal consent, while others are considerably more restrictive.
Common alterations that may require permission include:
- Installing or removing internal walls
- Refurbishing or fitting out shops, offices or restaurants
- Installing mezzanine floors
- Changing plumbing, electrical or ventilation systems
- Making structural alterations
- Altering entrances, windows or external features
It’s important to remember that landlord’s consent is separate from planning permission and building regulations approval. Depending on the works, you may need additional permissions even if your landlord has agreed to the alterations.
The safest approach is to check your lease and establish what consent is required before committing to the work.
Why does a Licence for Alterations matter for tenants?
Imagine you’ve just signed a lease on a new commercial property. You’ve agreed an opening date, appointed contractors and ordered everything you need for the fit-out.
Then you discover that your lease requires the landlord’s formal consent before certain works can begin.
Suddenly, your carefully planned schedule could be at risk.
This is one of the reasons why understanding your obligations early is so important.
For tenants, a Licence for Alterations provides written confirmation of the agreed works, helping avoid misunderstandings and reducing the risk of breaching the lease.
It can also clarify whether you’ll be expected to remove alterations and return the premises to their original condition when the lease ends.
What protection does it offer landlords?
For landlords, the concern isn’t simply what a tenant wants to change. It’s how those changes might affect the property, both now and in the future.
Alterations could affect the building’s structure, safety, services or suitability for future occupiers.
A Licence for Alterations allows landlords to review the proposed works and agree appropriate conditions before they begin.
Depending on the project, this might include approved plans and specifications, evidence of insurance, all necessary consents and requirements to comply with relevant regulations.
It also provides an opportunity to address reinstatement obligations, so both parties understand what should happen to the alterations at the end of the lease.
Who pays for a Licence for Alterations?
This is often one of the first questions tenants ask, particularly when they’re already budgeting for refurbishment or fit-out costs.
In many commercial leases, tenants are responsible for their own legal fees and the landlord’s reasonable legal and professional costs associated with the Licence for Alterations.
It’s worth understanding these costs at an early stage.
Can a landlord refuse permission?
The answer depends on the lease and the proposed alterations.
Some leases prohibit certain types of work altogether, while others allow alterations with the landlord’s consent.
In some circumstances, a landlord may be legally required not to withhold consent unreasonably. However, that doesn’t apply to every alteration or every lease.
The distinction can be particularly important where structural works are proposed.
How long does it take to obtain a Licence for Alterations?
There isn’t a standard timescale.
Straightforward works may be relatively simple to approve and usually takes approximately 2 to 4 weeks to final approval. Standard commercial fit-out works usually takes approximately 4 to 8 weeks. While more extensive alterations can involve additional discussions and technical information which could take several months.
The process may also take longer if drawings, specifications or other supporting documents are incomplete.
If you’re working towards a business opening date, refurbishment deadline or planned move, it’s worth discussing the proposed alterations with your landlord and solicitor as early as possible.
Getting the right advice before work begins
A Licence for Alterations might not be the most exciting part of planning a new office, shop or commercial space, but getting it right can save considerable time, expense and frustration.
For tenants, it’s about knowing what you’re permitted to do and understanding your responsibilities. For landlords, it’s about protecting the property and ensuring that proposed works are properly considered and documented.
At Lewis Denley Solicitors, our Commercial Real Estate team advises both landlords and tenants on commercial leases and licence for alterations.
Based in Horsham, we work with businesses, landlords and property owners across Sussex and beyond, providing practical, straightforward advice tailored to their circumstances.
Planning alterations to a commercial property, or received a request for consent from your tenant?
Speak to our Commercial Real Estate team before work begins. We can help you understand your obligations, navigate the consent process and protect your interests.