Licence for Alterations

Often a tenant on taking on new premises will require fitting-out works to be carried out.  Most leases will contain rules about what alterations a tenant can make to the premises it occupies or intends to occupy. At one end of the scale this will cover rewiring, installation of partitioning and at the other end, creation of new windows and structural changes.
The landlord is concerned to ensure the property value is not impaired by these works so it will usually prevent any structural alterations and permit non-structural alterations but subject to its approval of the drawings and specification in advance.

The landlord deals with this with the requirement for a licence for alterations. Unless the point is agreed otherwise in the Heads of Terms, the tenant will often be expected to foot the cost of the landlord providing the licence and the cost of the landlord’s surveyor reviewing and approving the proposed specification and drawings. If a superior landlord is involved, there will be their costs of review and approval and to take account of too.

The tenant will want to ensure these works, usually regarded as improvements, are not rentalised on a rent review. This will need to be covered in the licence.

The licence will usually contain an obligation on the tenant to remove the alterations at the end of the lease.

Please contact us for further information.