When making alterations to a property, it’s important to consider the implications. For tenants looking to make structural or significant non-structural changes to a leased property, a Licence to Alter (LTA) is expected to be required. This formal agreement is used to capture the approval from the landlord. It can cover alterations ranging from minor modifications, like installing partitions, to major renovations involving structural changes or the installation of new mechanical systems. The need for a LTA is dictated by the terms of the lease and which works require Landlords consent.
From a Landlords perspective, obtaining a LTA for Tenant works is essential. It ensures that alterations; are conducted in compliance with statutory regulations e.g. building regulations, planning consent etc; do not impact on the investment value; do not unnecessarily disturb other occupiers and the implementation of works considers safeguarding both the integrity of the property and the interests of all stakeholders involved.
Why is an LTA needed?
A Licence to Alter protects the landlord’s investment by setting out clear terms and conditions for alterations, ensuring that any changes align with the property’s structural integrity, safety standards, and long-term value. It helps prevent alterations that could impact other tenants, compromise building safety, or detract from the building’s overall aesthetic and operational functionality.
For tenants, securing an LTA minimises future liabilities, as the process ensures that their proposed modifications meet statutory requirements, such as planning permissions and building regulations. With a Licence to Alter in place, tenants gain clarity about reinstatement liabilities and avoid potential legal disputes over unapproved alterations. Essentially, the LTA process strikes a balance between tenant flexibility and landlord oversight, allowing both parties to protect their future interests and document their future dilapidations liabilities.
Our approach
At HartDixon, we offer a comprehensive approach to the Licence to Alter process, taking into account the immediate impact of any proposed alterations, but also their long-term implications. Our expertise spans multiple aspects of the LTA process, ensuring that each project adheres to legal and regulatory standards and supports the property’s ongoing operational and investment value. We deal with alterations both small and large, ranging from a straightforward office modification through to a comprehensive fit out requiring monitoring during construction and release of contributions.
Our role often involves:
Impact assessment: We thoroughly assess the proposed alterations to understand their impact on other tenants, the building’s operations, and the long-term investment value. This includes evaluating any reinstatement liabilities, ensuring compliance with statutory requirements, and understanding the potential for commercial implications.
- Detailed documentation: We accurately define, document, and record all proposed works for future reference, particularly alterations that will later be concealed and subject to a future dilapidations claim. This level of detail provides a reliable record for both landlord and tenant, especially for projects that may involve complex structural, electrical, or mechanical changes.
- Health and safety compliance: Proposed programs and health and safety plans are reviewed to ensure they meet all requirements, and we confirm that appropriate building insurance coverage is in place before any work begins.
- Statutory compliance and co-ordination: Our role includes overseeing compliance with essential statutory requirements, such as building regulations, planning permissions, and party wall/neighbourly matters agreements. If representing a tenant, we manage the entire LTA process, though this service is often integrated within our broader project management offerings, with most LTA requests commissioned by landlords.
- Specialist co-ordination: For alterations that require specialist knowledge, such as structural or mechanical modifications, we engage and coordinate with expert consultants. This ensures all technical aspects are addressed comprehensively.
- Negotiation and agreement: Our team negotiates and formalises the Licence to Alter agreement, supporting both landlords and tenants in achieving a clear, mutually beneficial agreement that facilitates the proposed alterations.
Odeon Cinema, Leicester Square
HartDixon provided Licence to Alter and Project Monitoring services for an extensive refurbishment project at the landmark Odeon Cinema in Leicester Square. This ambitious renovation included structural alterations, the installation of escalators, and a redesign of all public spaces in a sophisticated Art Deco style. A cutting-edge Dolby sound and laser projection system was installed, involving the suspension of over 400 speakers within the ceiling and a dynamic, movable screen system. The project also featured retail upgrades, including a cantilevered glass box overlooking Leicester Square.
Our responsibilities included negotiating the licence terms (alongside the Landlords solicitors) with the tenant and conducting ongoing monitoring inspections. By coordinating closely with the tenant’s construction team, we ensured a seamless integration of our inspections and provided consistent updates to keep all parties informed.
New Bond Street, London
In this project, HartDixon served as an LTA adviser, working in partnership with Great Portland Estates (GPE) to monitor tenant fit outs at a mixed-use development in Mayfair. Our role involved regular on-site inspections, reviewing final reports, and advising GPE on the financial progress tied to the fit outs. As works progressed, we reported on milestones that triggered payment drawdowns, keeping the landlord informed and engaged throughout the development.
Rhodium Residence, Bayswater, London
HartDixon provided Licence to Alter consultancy services at Rhodium Residence, a luxury, super-prime development in Bayswater. Our role included advising on alterations across multiple high-value residences, where discretion is paramount, and non-disclosure agreements are strictly observed. This project illustrates our commitment to providing bespoke LTA solutions that respect the specific needs and privacy of high-profile clients.
Lancashire Court, London
In this project, HartDixon served as an LTA adviser, working in partnership with Royal London Asset Management (RLAM) to assess and monitor the tenant fit out as a high end private members club at a development in Mayfair. Our role involved agreement of the Agreement for leases, regular on-site inspections, reviewing final reports, and advising RLAM on the financial incentives to be paid to the Tenant tied to the fit out. As works progressed, we reported on milestones that triggered payment drawdowns, keeping the landlord informed and engaged throughout the development.
The importance of expert guidance
Securing a Licence to Alter requires detailed planning, compliance with legal standards, and strategic coordination among all stakeholders. At HartDixon, we provide a holistic, expert-led approach that protects both landlord investments and tenant interests. With a deep understanding of regulatory and commercial implications, our team ensures that all alterations are conducted responsibly and in line with statutory and contractual obligations, safeguarding property value and building positive landlord-tenant relationships.