Don’t forget your Licence to Alter!

Tuesday, 29th January 2019
Licence to Alter | Surveying | Valuation

There are many different elements that will need to be considered in order for the vision of your extension to become a reality and it is apparent that a layperson is often unaware what professional help may be required along the way – there are the obvious ones; Architect, engineer and contractor, and to a lesser extent, the party wall surveyor.

In our experience, one of the major considerations that is both poorly understood and often forgotten by leaseholders/flat owners is the need for a Licence to Alter.  A license is issued in response to a request for the freeholder’s consent to the works. The exact nature of this consent will depend upon the contents of the lease and in particular what works the freeholder cannot reasonably withhold consent for.

A Chartered Surveyor who is experienced in this field can offer some general guidance but a solicitor will be able to interpret the alteration clause in the lease and provide more specific advice. What a freeholder can prohibit and what they cannot will have a significant bearing on their ability to charge a premium for said works. If works can be restricted, then it is highly likely a premium can be charged.

There can be some cross over with ‘development valuations’, in particular with requests to extend in to  loft spaces, but assuming that the freeholder is not entitled to charge a premium, what happens next?

The solicitor will review the lease and begin drafting the licence and the surveyor will review the proposals to determine how the works are likely to affect the external/common parts as well as any other leasehold properties within the building.

On large, typically commercial developments, it is common for both freeholder and leaseholder to have their own solicitor/surveyor team whereas for more modest residential alterations the leaseholder is more likely to rely on professionals chosen by the freeholder to cut costs.

The surveyor will schedule the condition of any parts of the property that could feasibly suffer damage during the works and, during that initial inspection, will also consider how potential inconvenience to other residents could be limited. If it is determined that an element is unacceptable, then this will be communicated to the leaseholder who will have to make appropriate design changes.

Additional information, such as structural calculations may also be needed along with information relating to the quality of the build. The solicitors will often request proof of insurance and a security deposit may be required. The licence will set out what works are permitted, the nature in which they should be carried out, and how the site should be managed.

All of this often seems to the leaseholder like yet another red taped hurdle to jump over but, as with so many things, the most menial of processes only show their benefit when they are ignored, the build doesn’t go to plan and the parties have to deal with the fallout.

If you are either a leaseholder proposing works, a freeholder who has received such a request or a share of freeholder in either situation, please call one of our team on 020 7183 2578 who will be happy to assist you or contact us via email.

Premium price but very good and detailed survey report provided,
I would like to say dealing with this company has been a pleasure, from first contact and all there correspondence.
I had a very positive experience with Peter Barry throughout the party wall process. Ayse and James were extremely helpful, professional, and responsive from start to finish. The service was carried out very quickly and efficiently, with no hassle at any stage. They kept me informed throughout the process and always made me feel reassured that everything was being handled properly. The award was completed smoothly, and the whole experience was straightforward and stress-free. I am very happy with the service I received and would not hesitate to recommend Peter Barry to anyone needing party wall advice or services. Thank you to Ayse, James, and the team for all your help.
We required a property valuation which is booked in and completed very quickly by Steve Hobbs. Thank you for your prompt service! Highly recommended
Excellent ‘old-fashioned’, impressive and highly diligent professional service concerning a Party Wall Award and much more (re Security Expenses, the Escrow Agreement, etc.), delivered with precision and attention to detail, and aided by modern technology, from Matthew Price, the surveyor, and Trina Shoat, the administrative support- WELL DONE & thank you…!
Very professional and communication was excellent. Highly recommend them to carry out a lease extension report.
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