14 September 2023

So your tenant/leaseholder is planning alterations? What should you do?

14 September 2023

So your tenant/leaseholder is planning alterations? What should you do?

Key Contact

Partner – Head of Building Consultancy Andrew Mazin
T: 07395 885790

Whether you own or manage commercial, industrial or residential property you will come across a situation where a tenant/leaseholder or a prospective tenant/leaseholder wants to alter or refurbish the space they occupy under the terms of their lease. Or perhaps a flat owner in a block of flats wants to alter or refurbish their flat. What should you do?

Firstly, you need to check the lease or proposed lease and see whether the tenant has the right to alter and under what conditions.

Occasionally leases have an absolute bar against any alterations which means that no tenant can do any works other than repairs and redecoration.

If there is the right to alter the next step is to ensure that the tenant/leaseholder provides an agreement to cover any costs incurred by the landlord or their surveyor in reviewing and approving the proposals. The next step is to instruct the professionals (building surveyors, solicitors, and structural engineers if required) who will provide guidance and advice as required.

There is the unwritten obligation that the Landlord has to deal with any request to alter in a prompt manner and to avoid any accusations of delay or being unreasonable.

Next Steps

Having checked the lease and obtained an agreement to costs there are a number of steps to consider:

  • Are the works within the part of the building that is owned by the tenant/leaseholder under the terms of the lease?

If work is planned outside of the demised premises then the tenant/leaseholder does not have any right and cannot carry out such work unless there is an agreement to extend the demise when the payment of a premium might be applicable.

  • Do the proposed works involve structural alterations?

A structural engineer may be required to check designs and calculations, and there maybe temporary works required.

  • Building Regulations

To what extent are they applicable to the proposed works? A completion certificate is required when the work is completed to ensure compliance with Building Regulations.

  • Are the proposed works notifiable under the Party Wall Act 1996?

The Act has its own timetable which could prevent the works being undertaken when the tenant/leaseholder wants.

  • What is the impact of the proposed works on adjacent parts of the property and what measures need to be undertaken to minimise the risk of damage and provide protection?
  • Is a schedule of condition required?

We’re here to help

Sanderson Weatherall has extensive experience across all sectors of commercial, industrial and residential property and can provide a range of services to review and assist with proposed alterations by tenants/leaseholders.

In addition, using our skills and expertise as building surveyors we can deal with consequences of proposed works including party wall matters.

If instructed we would ensure that the works carried out are in accordance with any approval and licence and if appropriate, recommend further action to ensure compliance with approved works and with statutory regulations.

Contact one of the team today to discuss your queries.