Licence to Alter
What is a Licence to Alter?
Under most leases a tenant is required to obtain consent from the landlord and/or the management company before making any alterations to their property. The document that confirms this consent is referred to as a “Licence to Alter” or a “Licence for Alterations”.
Whether or not consent (a licence to alter) is required will depend on (a) the specific works proposed and (b) what the lease states in the relevant covenants.
In most leases, the landlord will place a restriction on the extent of works that the tenant can undertake without first gaining landlord’s consent.
The most common works which would normally require a Licence to Alter include:
- altering the layout
- making structural changes
- refurbishing bathrooms or kitchens
- installing new mechanical or electrical service installations
- replacing windows
What is the process?
As a tenant wishing to carry out works to your property, the first thing you need to do is read your lease and understand whether Landlord’s consent is required. If it is, you must contact your Landlord or its managing agent to ask how to apply for a Licence to Alter and whether any Landlord’s regulations are in existence that you need to abide by.
What costs are involved?
Apart from your own professional team involving an Architect / designer, engineer (if required), project manager, contractor etc. you will also need to pay for the Landlord’s surveyor if one is required, his advising engineer if the works are of a structural nature that he or she will require engineering input, the Landlord’s solicitor’s fee for drafting and serving the Licence to Alter.
What kind of documentation will be required?
- An undertaking for the Landlord’s professional fees or money on account.
- Full details of the works including plans, specifications, and method statements
- Contractor’s insurance information
- Structural calculations (if applicable)
- Schedules of condition of adjacent flats / properties.
How long do matters take?
This depends very much on the complexity and extent of the proposals. Very simple works can be agreed within a few days. Extensive works that pose a greater risk can take weeks or months depending on the flow and quality of the information being sent .
How can we assist?
At GT Louis, we act for Landlords to administer the process on their behalf. If required, we can produce a bespoke set of Landlord’s Regulations so all leaseholders are clear on the requirements and to maintain quality standards in buildings. We aim to minimise the impact, risk and disruption to other leaseholders and protect the Landlord’s interest whilst being constructive and collaborative in our dealings with tenants.
We also act for tenants in managing the application process and liaising with the Landlord’s Surveyor to ensure the process is as efficient and swift as possible.
Building Surveys
A Building Survey is the most comprehensive report of its kind and should be used for larger or older properties, or when planning major works. It was formerly called a Full Structural Survey.
The report provides an in-depth analysis of the property’s condition and includes advice on defects, repairs and maintenance options.
At GT Louis, we firstly discuss the property with you and understand what you are looking to achieve from your purchase e.g. move straight in or carry out major works. This allows us to tailor our report to those areas that most interest and affect you and inform your potential purchase.
Our reports are not of the “tick box” variety. They are hand crafted bespoke documents in plain English that focus on what you really want to know about the property. Where we identify repair works required, we always provide you with budget costings so you can plan ahead and make sure that the purchase is absolutely right for you.
Schedules of Condition
What is a Schedule of Condition?
This is a record document of the current condition of a property at the time of inspection. The aim being that if someone was to pick up this schedule and read it, they would understand the exact condition of the property without having to refer to photographs. We pride ourselves on our attention to detail when recording these schedules. We describe all visible defects and, for example, with cracks, we aim to describe the length, width and nature of cracks.
Why are they needed?
They are typically required in three scenarios:
1) Party wall matters (insert link to section on party wall matters)
2) Licences to Alter
3) New leases where the condition of the property at the time is relevant (e.g. the tenant is not required to leave the premises in any better condition than it was at the outset – that condition needs to be accurately recorded).
Why do they need to be exhaustive?
Schedules of condition may make great bedtime reading (we are effectively talking about descriptions of cracks in minute detail) However they are also extremely important. They are the reference point against which alleged damage is considered. In party wall and licence to alter matters, they protect neighbours from damage, from neighbouring works, going unanswered. They also protect the person doing the work from spurious claims by neighbours “trying it on” or not perhaps having paid attention to every crack in their property until someone starts major works next door. Some surveyors will walk into a room and take some photographs on a mobile phone and label that a “schedule of condition” when it is nothing of the sort. Our schedules are descriptive, long (where needs must) and detailed. We hope the schedule never has to be referred to but in the event that it does, you will be glad you have it.
Do you also take photographs?
Yes. We usually take hundreds of them, sometimes thousands during one single inspection and we take them using a high quality digital camera that records the defects in sufficient detail that they can be blown up on a computer screen and examined if need be. This is sometimes the difference between claims being resolved / dropped or becoming full blown legal disputes.
Contract Administration
What is Contract Administration?
Administering a contract for building works from commencement to completion, typically including:
- Writing the specification of works (optional)
- Preparing the tender documents, sending them to contractors for tendering, receiving and analysing tenders and reporting to you with recommendations.
- Taking your instructions and placing a contract with the successful contractor. Preparing and executing the contract.
- Liaising with the contractor, holding weekly site meetings, preparing minutes of the meetings and distributing.
- Dealing with variations and any matters arising.
- Perusing contractors’ valuations, amending as required and valuing the works. Issuing payment certificates and the certificate of practical completion.
- Carrying out an inspection following the rectification period and issuing the final certificate following completion of any required remedial works.
Dilapidations
In commercial property law, ‘dilapidations’ refers to breaches of lease covenants relating to the condition of a property, statutory requirements and other matters. It then deals with the remedying of those breaches.
Commercial leases typically require the tenant to keep premises in repair; if they do not, the law of dilapidations applies.
Landlords have the right to serve a schedule of dilapidations on a tenant either during (interim) or more commonly at the end of the lease (terminal schedule), itemising the breaches of covenant and referring to the relevant lease clause and identifying the remedy. Remedies for the landlord will be for the tenant to undertake the specified works or actions or recover from the tenant the cost of remedying the breach. The schedule is typically prepared by a Chartered Surveyor.
Disputes often arise between landlords and tenants, and they will typically instruct surveyors to negotiate the claim, hopefully to settlement.
Most dilapidations are settled by negotiation, but other methods exist in demonstrating loss suffered by a landlord such as a diminution valuation.
Formal guidance on dilapidations exists such as the Property Litigation Association (PLA) protocol was adopted under the Civil Procedure Rules in 2012.
The RICS produces a guidance note on dealing with dilapidations claims, currently in its seventh edition. The Financial Reporting Council’s accounting standards also require occupiers to budget for dilapidations in their accounts leading to more tenants seeking professional advice on dilapidations before expiry of their leases.
Access and Scaffolding Licences
Under the Party Wall etc. Act 1996, rights of access for “work in pursuance of the Act” are granted. For other works, rights of access are not granted. In these circumstances, access has to usually be requested and negotiated separately. We are well versed in these matters and are happy to advise on the best approach to adopt.
You may require:
An Access Licence
Access onto neighbouring land may be required for all types of works. We are happy to approach, discuss and negotiate with a neighbour on your behalf with a view to preparing and agreeing a formal Access Licence.
Typically this could include, inter alia:
- Start and end dates
- Extent of access
- General rules
- A record of the current condition of the adjoining land.
- Details of any consideration to be paid.
A Scaffolding Licence
You may wish to erect scaffolding on, or over the airspace of, the neighbouring land. We can agree a licence similar in scope that simply for access but also including details of the scaffolding to be erected and usually including method statements and risk assessments.
Over-sailing or ‘Crane’ Licence
An owner of land owns it from the centre of the earth to the top of the lower stratum (typically around 500 to 1000 feet above ground level).
Where crane jibs or booms must swing over neighbouring land in order to enable construction works, an Oversailing / Crane Licence may be required in order to formalise permission to use this airspace. We can approach affected parties, negotiate, prepare and agree these Licences with them.