One of the first jobs for a surveyor called in to review a Leaseholder’s proposals is to ascertain whether they do indeed require a Licence to Alter.
Typically most leases will contain one of three provisions (or a combination of the three) in relation to alterations:
- Absolute Covenant: prohibits the alteration absolutely. Only if the Landlord is prepared to waive the clause will the tenant be able to make alterations;
- Qualified Covenant: prohibits alterations except with the Landlord’s consent;
- Fully Qualified Covenant: the alteration may only take place with the Landlord’s consent, which must not be unreasonably withheld.
Minor home improvements such as internal redecoration can usually be carried out under the terms of the lease. Anything that more substantially affects the fabric of the building will often require a Licence to Alter, and the surveyor will therefore undertake a more thorough review of such proposals with a view to drawing one up.
Some common examples of alterations include structural alterations, hard floor finishes, relocation of wet areas and external alterations.
Structural Alterations
These include changes to room sizes to create larger spaces, or the re-positioning of door openings. In such cases, it is usually recommended that the Landlord appoints an independent checking engineer to check the design and calculations of the Leaseholder’s engineer and ensure they have not made any errors or inappropriate assumptions. Schedules of condition must be prepared of the flats above and below the works, both before and after the structural alterations, to record whether any damage has occurred. The engineer must also consider whether load paths will be affected and if the contractor’s temporary works have been assessed and approved by the engineers.
Installation of hard floor finishes
Many leases state that floors in flats are to be left carpeted. A Leaseholder who removes carpet to install a hard floor finish (such as wood or stone) will often be in breach of their lease due to the noise nuisance that can result, affecting other flats. Where the Landlord will consider granting consent for the use of hard floors, it is important that the potential for noise nuisance resulting from the new hard flooring is mitigated. For this reason, specialist acoustic tests should be carried out to test the performance of the existing carpet, and acoustic insulation material suggested to meet the relevant benchmarks. Post-installation tests are also recommended to provide assurances that the new flooring and insulation meets the design targets.
Relocation of Wet Areas
Moving of kitchens and bathrooms to other parts of a property (or installing en-suites) can create noise pollution and affect plumbing elsewhere in the building. The Licence to Alter for such proposals must consider ventilation, installation of macerators, waterproofing systems and specific conditions that set a precedent throughout the building if one is not already in place.
External Alterations
Replacing windows, pipe-work alterations and the installation of new louvers all involve cutting into the Landlord’s structure (the external walls). In drawing up a Licence to Alter, a surveyor will therefore specify the appearance and durability of the materials to be used and ensure that the work will be carried out safely, taking into account any planning considerations and any precedents that might be set.
In each case, and in countless others, all parties will benefit from professional expert help.