Licence To Alter – Specialist Lease Solicitors
If you own a leasehold flat, you usually need the freeholder’s permission to make alterations. We answer the question “can I change the layout of my leasehold flat?” and explain what happens if the freeholder makes the process difficult – and what you cad do if you have made alterations without their consent.
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How you can tell that our lawyers are genuine leasehold experts?
Our 6 strong leasehold team have over 25 years’ experience and only deal with specialist leasehold matters – mainly lease extension, freehold enfranchisement, right to manage and licence to alter work. Very few firms can come near that level of specialisation.
But don’t just take our word for it. Although there are 10,000 law firms in England and Wales, we are the sole partners of The HomeOwners Alliance – the only solicitors recommended for this type of specialist leasehold advice by the only organisation to champion, support and serve Britain’s 17 million homeowners.
Alterations To Leasehold Property: Why do I need permission to make changes to my flat?
When you buy a flat, you must comply with the terms and conditions of the lease. As the flat owner, you own the leasehold interest. This is the right to live in the property for the years stated in the lease. The freeholder or landlord owns the fabric of the building and the land on which it stands.
The lease will contain rights and restrictions to benefit you, your freeholder and your fellow flat owners. For example, everyone in a block of flats must pay service charges. This allows the freeholder to pay for items like building insurance, utilities to the common areas and property maintenance.
By requiring all flat owners to ask permission to alter a flat, the freeholder ensures that any changes are not detrimental to the property or other flat owners.
What is a flat alteration or addition?
Your lease should give details of what works require consent. And bear in mind that long residential leases vary considerably – with some freeholders requiring more stringent rules than others. If your lease states that consent is required for structural alterations, this will include work on internal and external walls, foundations, and the roof. In addition, extensions or additions such as a conservatory, additional room, loft conversion, or work to the basement, and replacement windows are considered structural.
The lease may also state that you must ask permission to do more minor work, such as putting up shelving, replacing flooring and painting or papering walls.
How do I ask my freeholder for consent to alter my flat?
If you do need their permission for the changes you require, then you should put your request in writing to the freeholder, using the contact details from your service charge and ground rent demands or the address on the Land Register.
It’s often a good idea if your request refers to the relevant clauses in the lease. And you should definitely include full details of the alterations you wish to make. If you have professional plans, you can include these and state whether the works will fall within the area of your flat or outside of it and whether they are structural.
A risk assessment can be included, and you should give the freeholder an estimated timescale for completing the alterations.
Any change to the layout of my leasehold flat require permission from anybody else?
That depends on your particular circumstances. If the freeholder grants their consent, you must check whether you need planning permission from the local authority. When you complete the work, you may need a building regulations certificate from an inspector from the local authority’s building control department. It is essential to obtain this, or it could cause a problem when you sell the flat.
You may also need your mortgage lender’s consent to make alterations to the property. The mortgage offer will give details of whether this is necessary.
How much do I have to pay for permission to alter my flat?
Again this depends entirely on the contents of your lease. Your lease may allow your freeholder to make a reasonable charge for permission for flat alterations. This is to cover their costs, such as legal advice, drafting a licence for alterations, carrying out a survey, and arranging for the completed work to be inspected by a surveyor.
If the work is to your flat only, your freeholder may not be able to not charge a premium. However, if you are requesting alterations to the building, such as work to external walls, the freeholder may be able to charge an additional fee.
Does the freeholder have to give permission for alterations to a flat?
Again that depends on the type of alterations you are seeking. By law, the freeholder should agree to alterations to your flat unless they have a good reason not to, and they should not unreasonably withhold consent for improvements. However, if the work involves making changes to the exterior of the building, for example, cutting into exterior walls that do not form part of your flat, your freeholder can refuse to grant permission.
Reasons for refusing that consent can include that the proposed alterations could:
· Weaken the structure of the building
· Reduce the property’s energy efficiency rating
· Reduce the property value
What is a licence to alter? Applying For Consent
When you ask your freeholder for permission to make alterations, they can give their written approval or grant you a licence to alter, which is preferable.
Also known as a licence for alterations, this is a formal legal document setting out the freeholder’s agreement. It will include details of the permitted work and any terms or conditions they impose.
A protocol exists for dealing with a request for a licence to alter. Known as the Protocol for Applications for Consent to Carry Out Alterations, it sets out what information you must give the freeholder and a time frame for them to respond. They should acknowledge your request within five working days and can ask for more information if needed. The freeholder is required to provide a decision within a reasonable time.
The protocol also deals with issues such as the leaseholder’s payment of the landlord’s reasonable costs and dispute resolution.
We can ensure that your application for a licence to alter your flat is correct.
My freeholder is unreasonably withholding consent – what can I do?
You should take specialist legal advice if you cannot obtain consent to alter your flat because the freeholder is not responding or is unreasonably withholding consent. If you can prove that you gave the freeholder a written request, you may be able to make alterations. But you should always speak to a solicitor before doing any work – and don’t forget, our specialist leasehold team always provide free initial phone advice.
Making sure you get the right advice from a specialist solicitor in advance should ensure that you have evidence to show that you have taken all reasonable steps to secure the freeholder’s consent.
Can I change the layout of my leasehold flat without permission?
If you own a leasehold property, you will almost always need the freeholder’s consent to alter or extend it, including changing the internal layout. Minor work, such as normal maintenance or replacing a kitchen or bathroom, might be allowed under the terms of your lease, but you must always check before going ahead.
Can I get retrospective consent from my freeholder?
If you have already carried out alterations or added an extension, you can ask the freeholder for retrospective consent. They may try to make the situation difficult but should still grant permission unless they can provide a good reason not to. Similarly, they should not charge a premium.
Should your freeholder be reluctant to grant retrospective consent for alterations, you can speak to our specialist team who can negotiate on your behalf to find a prompt solution.
Leasehold alterations without consent – what happens?
When you sell your flat, you are likely to face delays if you do not have the freeholder’s consent for leasehold alterations. Your buyer will almost certainly be advised by their solicitor not to go ahead until they have this. In any event, if yours is not a cash buyer and is relying on a mortgage, it will also be one of their lender’s conditions that all alterations or extensions have the necessary permissions.
If you have not started the process of obtaining the freeholder’s consent, delays could make the sale process stressful. You will be at the mercy of the freeholder, and they could try to impose an unreasonable administration charge for dealing with the matter urgently.
There is a risk that the freeholder could object to the work that you have done. If they have a good reason or the work involved changing the fabric of the building, they could require you to put the property back the way it was. That can prove very expensive indeed.
If the alteration breaches the lease, then there is a risk that the freeholder could take legal action to try and forfeit the lease. If the courts grant forfeiture, the freeholder could take the property from you. While this is a worst-case scenario, and rarely happens, it is possible and it does illustrate how serious the situation can be if not dealt with effectively.
Do I need freeholder permission to remove an internal wall?
You will usually need the freeholder’s permission to make any structural alterations or changes to the layout of the property. Start by checking the lease, and if you are uncertain, call for an initial word with one of our expert leasehold solicitors. Substantial work on any leasehold flat or house, such as removing an internal wall, generally requires consent.
A surveyor will be able to tell you if a wall is load-bearing. If it is, you will almost certainly need the freeholder’s permission to remove it, and there is a strong possibility that they will not grant this. If they are prepared to agree, they will need reassurance from your surveyor and builder that they will put adequate alternative support in place before the removal of the wall.
A previous owner knocked a wall down without permission – where do I stand?
If you have bought a flat and the previous owner has failed to obtain the freeholder’s permission, you should consider requesting this. When you want to sell, the solicitor for your buyer is likely to ask for it and if it is not available, you risk losing your buyer or delaying the sale.
Can the lease be varied?
If your lease prohibits certain work to the property, you can ask the freeholder if they are prepared to vary the lease. They may charge a premium for this, and you will need to pay their reasonable costs. However, varying the lease to remove a restriction can allow you to make the alterations you want without breaching the lease. You would still need to obtain the freeholder’s consent for the changes.
Again our specialist leasehold team regularly deal with these kind of lease variations.
Buying the freehold
Most flat owners have the right to buy the freehold if they work together – in a process often referred to as collective or leasehold enfranchisement. Where at least half of the flat owners in a block want to join in the purchase, or both flat owners if there are only two flats, there is a formal process which allows you to purchase the freehold interest from the landlord.
Once you and the other flat owners have the freehold, you can decide what alterations you are prepared to agree to and whether you want to vary your leases.
Interested in buying your freehold? Click here to read more about how our collective enfranchisement solicitors can help you