Niki Adkins, Associate in Frettens broad Leasehold Property Team, answers the question ‘can I alter my property?’; providing an overview of licenses to alter and deeds of variation.
Can I improve or alter my property?
In most cases you can; but it will usually be subject to your freeholder’s consent by way of a ‘Licence to Alter’. You should never proceed to alter or improve the flat without checking your lease first and/or liaising with your freeholder.
Your freeholder has a duty to the other flat-owners in the building to make sure that they are not adversely effected by your proposals and to ensure the building’s structural integrity is protected.
In addition, the flat leases may prevent the freeholder from granting certain permissions, so a detailed review of yours and the other leases is often required.
Can I make alterations to a leasehold property?
The lease is the first place to start when considering what alterations (if any) are permitted and whether freeholder-consent is needed. Some leases ban alterations all together; and some even ban simple improvements such as new kitchens and bathrooms, although this is less frequent.
Most common is a clause stating that improvements can only be made by a flat-owner with the prior formal consent of the freeholder. The lease as a whole would need to be considered as there are often provisions regulating the use/size/nature of a flat and what a freeholder can or cannot consent to.
What is a ‘Licence to Alter’?
If alterations are made to a flat, a Licence to Alter would be required by a future buyer (and/or their mortgage lender) to show that the correct procedures have been followed and that they won’t have issues during their ownership of the flat.
A ‘Licence to Alter’ is the legal document that records the freeholder’s permission and the basis on which the permission is granted. The Licence would also cover important points like the level of contractors’ insurance required, and the hours of the day the work can be carried out.
Depending on the nature of the alterations, the Licence may also require the works to be inspected during and afterwards, and then ‘signed-off’ by the freeholder’s appointed surveyor. The complexity of the Licence will depend entirely on the nature and complexity of the proposed alterations.
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