We've lost count of how many clients have come to us with a beautiful set of office designs, a contractor lined up, and a start date already pencilled in, only to discover they can't legally touch the building yet. The missing piece is almost always the same thing: a Licence to Alter.
It's not the most exciting part of planning an office fit-out, and most businesses don't realise it until their landlord puts the brakes on a project that's already gathering momentum. But getting this right at the start saves you weeks of delay, unexpected legal costs, and in some cases, a genuine breach of the lease. So let's walk through exactly what a Licence to Alter is, when you need one, and how to get it sorted without it holding up your refurbishment.
What Is a Licence to Alter?
A Licence to Alter is the formal document a landlord uses to give a tenant written permission to carry out specified changes to a leasehold property. It's a legal document that sets out the terms and conditions under which the alterations may be carried out, records the works the tenant proposes to undertake, and protects the landlord's interests and those of other tenants in the building. It's a separate document that sits alongside your lease agreement, not a replacement for it. It doesn't replace the lease; it's an additional deed that records the landlord's consent to a clearly defined package of works and the conditions attached to that consent. If you're planning anything beyond redecorating, this is the document standing between your fit-out plans and the keys to actually start work.Why Most Commercial Leases Require One
This catches many business owners off guard. You've signed a lease, you're paying rent, surely you can do what you want with the space you've taken on? Not quite. Many tenants do not realise that alterations to commercial premises may require the landlord's permission before any changes are made. Most modern commercial leases are designed to protect the landlord's asset, which means alterations are tightly controlled. The general structure most lease terms follow looks like this:- Structural alterations are usually prohibited outright or permitted only with explicit written consent.
- Non-structural changes affecting shared building services, such as moving HVAC, ductwork or fire systems, will almost always need consent.
- Minor cosmetic work, such as redecoration, may be permitted without formal consent, though it's always worth checking.
When You Definitely Need to Apply for a Licence
We tell every client to ask themselves one question before booking in any fit-out work: does this touch anything beyond the surface? You'll almost certainly need to obtain consent if your proposed works involve:- Removing, adding or relocating internal walls or partitions
- Moving or interfering with HVAC, ductwork or shared mechanical and electrical systems
- New meeting rooms, breakout spaces, or significant layout reconfiguration
- Installing or upgrading air conditioning
- Anything affecting the building's external appearance or fire safety systems
- Cabling, wiring or services that run through shared parts of the building
What Happens If You Skip It
This is the part that genuinely worries us when we hear about it after the fact. Carrying out structural alterations or unauthorised works without consent isn't a grey area; it's a breach of the lease. Where a lease requires landlord consent for works or alterations, carrying out those works or alterations without that consent puts the tenant in breach of their lease obligations. The consequences aren't theoretical either. A landlord can seek an injunction forcing the tenant to reinstate the alterations or stop the works entirely, and may also claim damages in certain circumstances. Even where a landlord is willing to forgive an oversight after the fact, you're not in a strong negotiating position. If alterations have been made without permission, the landlord might grant retrospective consent, but because it's granted after the event, the attached conditions can be far less reasonable than if you'd applied properly in the first place. That's not a position any business should deliberately put itself in, particularly when the fix is simply to apply early.How the Application Process Actually Works
Getting a Licence to Alter doesn't have to be a slow, painful process, provided you approach it properly from day one.- Step one: review the lease terms properly. Don't assume what's allowed. Get legal advice if the wording is unclear, particularly around what counts as structural versus cosmetic, and who else needs to give consent, such as a superior landlord or guarantor.
- Step two: prepare a complete works pack. Landlords and their surveyors want detail, not vague intentions. A complete works pack, including drawings, specifications, risk assessments and method statements, insurance details and a project programme, speeds up approvals and keeps landlord costs proportionate.
- Step three: submit and expect scrutiny. Once submitted, expect the landlord to instruct their own surveyor and lawyer to review the proposed works, and ask for an estimated fee and target timetable upfront so there are no surprises.
- Step four: factor in realistic timescales. A typical licence to alter for a standard fit-out takes around four to eight weeks to complete. That's not a delay you want to discover halfway through a relocation timeline you've already promised to your team.
- Step five: budget for the legal fees. It's standard for the tenant to pay the landlord's legal fees for preparing the licence for alterations, which can run into several thousand pounds. There's a genuine cost-saving available here, too. Where a Licence for Alterations is negotiated alongside the lease itself, rather than after completion, there's a potential cost saving for the tenant, since each party is more likely to cover their own legal costs. If you know you'll be fitting out the space, raise it during lease negotiations rather than waiting.