Licence to Alter

Why HartDixon?

As surveyors, experienced across all sectors and with a technical yet commercial background, we are perfectly placed to manage the entire process both for Landlords and Tenants.  We are used to collaborating with all interested parties – Tenant, landlord, managing agent, solicitors, facilities manager, quickly pin pointing what will cause an issue and how to get around it, to ensure a successful outcome.  The assessment process is always needed quickly by a Tenant and the Landlord often has the same driver, given licences to alter are often forming part of a new lease discussion.  We therefore make sure the process is efficient, commercial with our end aim always to recommend approval unless the alterations fundamentally cause issues and a solution cannot be found.  In such cases, when acting for a Landlord, it is imperative that we take a robust stance, to protect the Landlord from future liabilities.

Through our dilapidations, party wall and commercial refurbishment expertise, we understand the consequences of not having legal agreements in place. By ensuring a robust assessment process and clear commercial advice, our clients are confident that the outcome cannot be disputed many years later or when change happens – whether this be a new landlord or change in the tenant’s circumstances.

From time to time, leaseholders find it necessary to alter their premises, either before occupying the space or there is a need to undertake extensive refurbishment due to business growth or a tired environment. Changes like these typically require permission from the landlord through a licence to alter.  This can be a simple process, however if the approval process is not managed/assessed correctly (especially in multi occupied buildings), it can lead to the Landlord becoming exposed to scenarios where alterations cause disruption to other Tenants, impact on the operation of the building and/or impact on future investment value.

A Licence to Alter is a legal agreement that sets out what is permitted and more importantly records the alterations to understand future reinstatement liabilities when a Tenant exits the space.  Having clear and well documented agreements are essential to avoid costly end of lease disputes and subject to the alterations can increase investment value. Failure to properly assess (both technically and commercially) and record Tenant alterations in a Licence to Alter leaves future liabilities open to interpretation and can cause huge disruption to a building, impacting on all who occupy at the time of alteration and thereafter.

Our Approach

We take a holistic approach thinking, not only about the impact of alterations at the time of installation, but also about the future and commercial impact.  Our role will be to:

• Analyse alterations to assess their impact on other Tenants in the building, the operation of the building and the investment value (reinstatement liabilities and statutory compliance).
• Accurately define and record the works being proposed for future reference, particularly works which will be concealed.
• Review proposed programmes, health & safety concerns and ensure Building Insurances are in place before works commence
• Ensure compliance with statutory requirements eg building regulations, planning consent, party wall awards etc.
• If acting for a Tenant, we can project manage and facilitate the licence to alter process, although this is in built into our project management service, with most licences to alter being for Landlords
• Coordinating specialist consultants dependent upon the scope of alterations principally structural or mechanical and electrical input.
• Negotiate and agree the licence for alterations for landlord and tenant.