License to Alter options for Share of Freeholders

At Peter Barry Surveyors, we regularly hear from flat owners looking to carry out works at their property—typically seeking advice around the Party Wall Act. But time and again, we discover that around 50% of leaseholders haven’t been advised of something just as important: the need for a licence to alter from their freeholder.

Whether you’re planning to remove a chimney breast, reconfigure internal walls, or carry out structural work, your lease likely requires you to get formal consent before proceeding. This isn’t just a legal formality—doing work without permission can breach your lease and have costly consequences.

The process varies depending on the ownership structure of your building. If your freeholder is a third-party investor, expect the licence to involve a solicitor, which can result in a lengthy and more expensive route. However, for leaseholders who own a share of the freehold, there’s typically more flexibility—and often, less red tape.

In these cases, there are two main types of licence arrangements:

Option 1: Letter Licence

This is suitable for straightforward tasks, such as installing steel beams or removing internal walls. It’s typically a two-page document that:

– Clearly sets out the scope of works

– Includes supporting plans, especially structural or engineering drawings

– Confirms the leaseholder’s duty to reinstate or make good any damage

– Attaches a pre-works schedule of condition

The letter is then signed by both the leaseholder and the freeholder(s).

Option 2: Intermediate Licence Agreement

This is more detailed—usually five to six pages—and may be used for more complex or sensitive works. It falls somewhere between the simplicity of a letter licence and the fully solicitor-drafted alternative, offering clearer structure and protection without incurring significant legal costs.

Every case turns on its own facts, but the key takeaway is this: if you’re a leaseholder preparing for works, don’t just think “party wall”—think “licence to alter,” too.

Peter Barry Surveyors can advise you on both fronts, helping you navigate the legalities and avoid pitfalls before a single brick is removed.

If you require advice on a party wall matter or are in need of a license to alter as a share of freeholder, you are welcome to contact us on 020 7183 2578 or via email.