A Licence for Alteration provides tenants with the landlords consent for specified improvement works to their leased premises.

If a tenant wishes to make any improvements or carry out major works to its premises during the term of its lease, it is standard practice for the landlord and tenant to enter into a Licence for Alteration.

The purpose of a Licence for Alteration is not only for the provision of the landlord’s consent, but also records details of the works that will take place on the property, which have been agreed between the landlord and the tenant. Although structural alterations are usually prohibited, non-structural alterations are generally permitted, subject to obtaining the landlords’ consent.

Whether or not a Licence to Alter is required will be defined by the details of the lease and the scope of works the tenant wishes to carry out. Although many alterations could improve the property in terms of its efficiency and attractiveness, landlords must consider any negative impact the alterations may have, particularly in terms of the future marketability of the property and any health and safety issues.