How Much Does A Licence To Alter Cost?

A licence to alter can cost more or less depending on the lease, the works, the landlord's requirements and how much negotiation is needed. There isn't one fixed UK price that applies to every commercial lease.

The reason it's a bit more nuanced is that you're usually paying for more than a single document. You may need your lease reviewed, plans checked, the landlord's consent negotiated, a formal deed prepared, and sometimes input from surveyors, insurers, planning consultants or building control.

If you're budgeting for a shop fit out, office partitioning, cafe kitchen upgrade or salon refurbishment, it's worth knowing what drives the licence to alter cost before you commit to trades, deposits or a launch date.

What Is A Licence To Alter?

A licence to alter is a written consent from your landlord that lets you carry out specific works to your commercial premises. It usually takes the form of a deed signed by you, your landlord and sometimes other parties, such as a guarantor or superior landlord.

Your lease will usually say whether you can make alterations and what consent you need. Commercial leases commonly split works into categories such as:

• Non structural internal works, such as partitions, flooring, counters, shelving or lighting.
• Structural works, such as cutting into walls, changing supports or altering the roof, floor slab or services.
• External works, such as shopfronts, signage, awnings, extraction units or plant equipment.
• Services works, such as plumbing, electrics, air conditioning, fire safety systems or extraction.
• Change of use or layout works, which may affect planning, building regulations, insurance or the landlord's wider estate rules.

A short email saying 'approved' might feel helpful, but it often isn't enough. A proper licence to alter should describe the approved works clearly and set out the conditions attached to that approval. Without that, you can end up arguing later about what was actually agreed.

For example, if you install a commercial kitchen extraction system and the lease only approved 'minor internal alterations', your landlord may say the work went beyond consent. That can affect rent reviews, renewal discussions, dilapidations and your ability to sell the business later.

How Much Does A Licence To Alter Cost?

The cost depends on the amount of legal and technical work needed. A simple consent for low risk internal alterations will usually be more straightforward than structural works, external changes or works that affect shared services.

The main cost drivers are usually:

• The lease wording: some leases have a simple consent process, while others need formal deeds, superior landlord consent or guarantor approval.
• The type of works: structural works, extraction, drainage, electrics and fire safety changes usually need closer review.
• The quality of your plans: clear drawings, method statements and contractor details can reduce back and forth.
• How cautious the landlord is: some landlords require surveyor input, insurance checks and detailed reinstatement obligations.
• Negotiation: costs can increase if there are disputed conditions, tight deadlines or unclear responsibilities.
• Third party consents: a superior landlord, lender, management company or planning authority may need to be involved.

There are usually three ways tenants approach the document side of things:

• Free template: low upfront cost, but risky if it doesn't match your lease, works or landlord's conditions.
• Online fixed fee legal service: useful if you want cost certainty and a tailored document or review before you proceed.
• Traditional hourly billing: can suit complex projects, but the final fee may be harder to predict if negotiations drag on.

Templates often miss the practical details that matter most, such as who pays for damage, when reinstatement is required, whether works can happen outside trading hours and what happens if the works delay your opening. A lawyer should tailor the licence before it's used, especially if your fit out is central to your business model.

Who Pays The Landlord's Legal Fees For Alterations?

In many commercial leases, you pay the landlord's reasonable legal and surveyor fees for considering your request and preparing the licence to alter. Your own legal costs are separate.

Your lease is the first place to check. Many leases say the tenant must pay the landlord's costs whether or not consent is ultimately granted, provided those costs are properly incurred. Some leases also require you to pay fees for the landlord's managing agent, surveyor, building consultant or superior landlord.

That doesn't mean every amount requested is automatically beyond question. You can ask for:

• a costs estimate before work starts;
• details of what the landlord's lawyers or surveyors will be doing;
• confirmation of whether VAT is payable;
• whether money must be paid on account before consent is reviewed;
• who will pay if the landlord changes its mind or raises new conditions late in the process.

Say Priya runs a small bakery in Manchester. Her lease allows internal non structural alterations with landlord consent. She wants to install a new counter, move some lighting and add a small preparation sink. The landlord asks for a £750 payment on account for legal and surveyor costs. Priya's own adviser also reviews the lease and proposed licence. That £750 isn't a market guide for every deal. It's just the amount in her situation, but it shows how a tenant can have both landlord side and tenant side costs to budget for.

If the works are more complex, the landlord may also ask for a rent deposit top up, a reinstatement bond or evidence that your contractor has suitable insurance. Those aren't strictly legal fees, but they can affect your total cashflow before works begin.

Do I Need Landlord Consent For Commercial Lease Alterations?

Yes, if your lease says you need consent, you should get it before starting works. Carrying out alterations without consent can put you in breach of your lease.

Most commercial leases restrict alterations in one of three ways:

• Absolute ban: the lease says certain works aren't allowed at all.
• Qualified consent: the lease says works are allowed only with the landlord's consent.
• Fully qualified consent: the lease says consent can't be unreasonably withheld or delayed.

For many improvement works, section 19(2) of the Landlord and Tenant Act 1927 can affect how consent clauses operate. In broad terms, where a lease restricts improvements without consent, the landlord may not be able to unreasonably withhold consent. The landlord can still impose reasonable conditions, including compensation for loss in value or damage, and reinstatement at the end of the lease.

The detail matters. A landlord may have good reasons to refuse or condition consent if the works:

• affect the building's structure or safety;
• reduce the value of the landlord's property;
• interfere with other tenants or shared services;
• breach planning, building regulations or insurance requirements;
• make reinstatement difficult or expensive at lease end.

You may also need approvals beyond your landlord's consent. For example, signage, external shopfront changes, extraction systems or a material change of use can require planning permission. Building work may need building regulations approval through the local authority or, in England, a registered building control approver. If your premises are listed or in a conservation area, the consent process can be more sensitive.

Don't assume that consent from your landlord means planning and building control are sorted. They're separate processes, and your licence to alter should make clear who is responsible for obtaining them.

What Should Be Included In A Licence To Alter?

A licence to alter should describe exactly what you're allowed to do and the conditions you must follow. The clearer the document, the less room there is for an expensive dispute later.

A good outline will usually include the following sections. This isn't a finished legal document, but it's a useful way to check whether the main points have been covered before a lawyer tailors it for your lease and project.

1. Parties: name the landlord, tenant and any guarantor, superior landlord or management company that needs to sign.
2. Lease Details: identify the lease, premises, date, parties and any variations or side letters.
3. Approved Works: describe the works and attach plans, drawings, specifications and method statements.
4. Conditions Before Works Start: list what you must provide first, such as contractor insurance, approvals, risk assessments and programme details.
5. How Works Must Be Carried Out: cover working hours, noise, access, safety, waste removal, disruption and compliance with law.
6. Costs And Fees: set out who pays legal, surveyor, management, professional and third party consent costs.
7. Insurance And Liability: confirm contractor cover, public liability, damage to the building and indemnities.
8. Planning And Building Regulations: state who obtains approvals and what evidence must be given to the landlord.
9. Completion Evidence: require as built drawings, electrical certificates, gas safety documents, warranties or building control sign off where relevant.
10. Reinstatement: say whether you must remove the works and make good at the end of the lease.
11. Breach And Remedies: explain what happens if works go beyond consent, cause damage or aren't completed properly.

For a small internal fit out, some of these clauses may be short. For a restaurant, gym, medical clinic or manufacturing space, they may need more detail because the works can affect extraction, drainage, floor loading, fire safety, accessibility and noise.

How Long Does Landlord Consent For Alterations Take?

It depends on the lease, the landlord and the works, but you should avoid planning your opening date on the assumption that consent will be instant. There's no universal 28 day rule for every alteration request.

A simple internal consent can sometimes move quickly if your documents are ready and the landlord is responsive. More complex works often take longer because the landlord may need input from lawyers, surveyors, insurers, managing agents or a superior landlord.

What Can Slow Things Down?

• unclear drawings or missing specifications;
• the landlord asking for a surveyor's report;
• structural calculations or fire safety queries;
• planning permission or building regulations approval;
• questions about reinstatement at the end of the lease;
• needing consent from a superior landlord or lender;
• disagreement about who pays professional fees.

If planning permission is needed in England, many minor and other non major applications are usually targeted for decision within 8 weeks, while major applications are usually 13 weeks. That's a planning authority target, not a promise that your landlord consent will be final by then.

A Practical Timing Example

Ben runs a fitness studio in Leeds and wants to add two treatment rooms, rubber flooring and extra showers. His contractor can start in 3 weeks, but his lease requires written consent for alterations and the landlord wants drainage details, acoustic information and a reinstatement plan.

If Ben signs the contractor's start date before consent is agreed, he may end up paying delay costs or losing his preferred contractor slot. A safer approach is to build the consent process into the project timetable, send a complete pack early and make the contractor start date conditional on landlord consent.

Your request pack should usually include:

• a clear description of the works;
• plans, drawings and specifications;
• contractor details and insurance evidence;
• timing and access requirements;
• planning or building control position;
• details of any impact on structure, services, fire safety, noise or other tenants.

When Should You Get A Lease Review Or Landlord Consent Deed?

You should get a commercial lease review before you spend serious money on the fit out, and you should use a formal landlord consent deed where the lease or the works call for it. This can save you from building something you later have to remove.

A lease review is especially useful if:

• you're negotiating an agreement for lease or haven't signed the lease yet, and the fit out is essential to your business;
• the lease wording is unclear or strict;
• the works involve structure, external areas, signage, services or extraction;
• you need to trade by a particular date;
• you plan to sell the business or assign the lease later;
• you aren't sure whether reinstatement will be required at lease end.

A formal deed is usually sensible where the works are more than very minor changes. It helps create a clear record for you, the landlord, future buyers, assignees, lenders and surveyors. If you later sell your cafe, clinic or retail store, a buyer may ask whether your alterations were properly approved. If you can't prove consent, that can slow down the sale or create a price negotiation.

Before you start works, follow this simple order:

1. Check The Lease: look for alteration, use, signage, insurance, compliance and reinstatement clauses.
2. Prepare Your Works Pack: gather plans, specs, contractor details, timing and approvals.
3. Ask For Cost Clarity: request estimates for landlord legal, surveyor and management fees.
4. Get The Consent Document Right: make sure the licence matches the works and your commercial timetable.
5. Keep Records: save the signed licence, approved plans, certificates and completion documents with your lease file.

If something has already gone wrong and you've started without consent, pause before doing more work. Gather your plans, invoices, photos and contractor documents, then get advice on how to approach the landlord. A careful retrospective consent request is usually better than hoping the issue won't be noticed.

Key Takeaways

• A licence to alter cost depends on your lease, the type of works, landlord requirements and how much negotiation is needed.
• You may need to pay your own legal costs plus the landlord's reasonable legal, surveyor and management fees if your lease says so.
• Landlord consent for alterations should usually be in writing, and more substantial works often need a formal deed.
• Planning permission, building regulations approval and landlord consent are separate processes, so check each one early.
• A lease review before you commit to a fit out can help you avoid delays, unexpected fees and reinstatement problems later.
• Keep signed consent, approved plans and completion certificates with your lease documents, especially if you may sell or assign the lease.

If you'd like help with reviewing your commercial lease, preparing a landlord consent deed, checking alteration conditions or budgeting for legal steps before a fit out, you can reach us at 08081347754 or team@sprintlaw.co.uk for a free, no-obligations chat.