Home renovation may be an exciting process – it is always good to imagine that you will redesign your home and make it more useful, prettier, or more valuable. However, when you are in a leaseholded property, one thing that you cannot afford to omit before you knock a wall or decide to alter the arrangement of your kitchen is a Licence to Alter. This document is not taken as serious or estimated in terms of its price by many homeowners, yet it is important to make sure the project will proceed smoothly in terms of being legal. This blog will discuss what a Licence to Alter is, why it is necessary, when you are required to have one as well as how to account the costs of doing so in your budgeting plan of your renovation project.
How Much Does a License to Alter Cost? Complete Guide
A Licence to Alter (LTA) is an authorised written permission that you are officially given by your freeholder or landlord so that, as a leaseholder, you can carry out internal structural or significant alterations on your premises. This is the reason behind the importance of this document since in most cases, lease agreements do not allow some forms of changes unless approved. These can be the removal of internal walls, plumbing, replacement of windows or modification of electrical systems.
The Licence to Alter safeguards both the parties where you and your freeholder are parties to it. To you it gives the comfort that your works are legally acceptable and will not cause trouble in future. To the freeholder, it will guarantee that any changes that will be made do not affect the structural integrity and value of the property. In other words, you may find it very difficult to sell your home, renew lease or, even, when making claims in building insurance without a Licence to Alter.
But to summarise, it is not merely a matter of obeying rules to carry out this licence, but it is a matter of protecting your investment and ensuring that you have good relations with your freeholder.
What is a License to Alter and Why It Matters
The trivial aspects of decor such as repainting, changing of carpets, or replacing of kitchen cabinets are not usually subject to consent. But in case you are doing a project that requires structural or material alterations, then there is a high possibility that you will need a licence.
Examples of common ones are knocking through, renovating a loft, replacing windows, installing new plumbing or heating, or providing soundproofing between floors. Even internal changes, such as the installation of hardwood floors in a flat, may not be allowed as there may be a noise implication on the units in the vicinity.
First it is better to review your lease. A majority of the leases are provided to include a provision of the nature of work to be approved. To avoid confusion, a property solicitor or your managing agent should be asked about any work that you intend to undertake. Acting without a License to Alter can lead to legal complications, fines, or even demands to reverse the work.
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When You Need a License to Alter Your Property
As one goes about budgeting the renovation, it is very simple to look at the more obvious costs such as materials, labour, and finishes. However, the License to Alter cost should also be part of your financial plan. Depending on the complexity of your project, the needs of your freeholder and professional fee incurred, the overall cost may change.
Typically, a License to Alter cost in London or across the UK ranges between £1,000 and £3,000, though it can go higher for larger or more complex works. The key expenses include:
Freeholder legal charges: This is the charge that is levied by the legal advisor of the landlord to review your application and make up the licence document.
Surveyor fees: The majority of freeholders will have their own surveyor to survey your proposed works and can assure that it would not interfere with the structure of the building.
Your own professional charges: You probably will require your architect, structural engineer or designer to make preparations of drawings, specification and method statements in order to assist your application.
If your property is in a listed building or conservation area, additional consultations with local authorities or conservation officers might also be required, increasing the overall License to Alter cost.
Step-by-Step Process to Apply for a License
Applying for a Licence to Alter might sound daunting, but with the right guidance, it’s a manageable and structured process. The initial stage will be to inform your freeholder or managing agent about your proposed works. They will tell you the documentation that is needed – which is normally architectural drawings, a schedule of works, and occasionally a report of a structural engineer.
Then your application will be considered by the surveyor of the freeholder who may come to the property and evaluate the possible effects of the works. Once the surveyor and the landlord’s solicitor are satisfied, they’ll draft the Licence to Alter document, which both parties will sign. This is a document that establishes the extent of work that is allowed, the timeframes, terms and any reinstatement requirements.
In the process, you need to communicate clearly with everybody involved in the process i.e. your architect and contractor. A properly done application will not only increase the speed of the approval process but it can also save money by saving the needless rewrites or conflicts.
