How to get permission for your flat renovation (even on a leasehold)
Image based on photograph by Anna Shvets.
Do you own a flat that could be improved with some renovations - be that an extension or just an alteration of the existing layout - but you're just not sure what you're allowed to do because your property is leasehold?
The answers are contained within your lease.
For this guide we've teamed up with Darran Smith, a partner at Glovers Solicitors, specialists in legal matters around construction, commercial property and property finance. We will show you how to obtain your lease, what to look for in the text of the lease, and what to do next.
While the focus of the article is on leases and getting permission from your freeholder, we will also touch upon the other permissions you could need and the right order in which to think about them. Not all of these will be relevant to every property, but some flat-owners may be seeking consent for their renovation at 5 separate stages!
Read on to see which apply to your home.
Contents
Step 1: Obtain a copy of the lease
Check for clauses limiting alterations
Check for qualified prohibitions
Check for absolute prohibitions
If the lease is silent on alterations
Check for mutual enforceability covenants
Step 4: Ask for permission from the freeholder (and the other leaseholders if needed)
Step 5: Get planning permission
Step 6: Inform your mortgage lender and insurance company
Step 1: Obtain a copy of the lease
If you live in a freehold property, then you don't have to worry about a lease. However for owners of flats - either in purpose built blocks or house-conversions - the lease will be the first obstacle to your renovation, and potentially the most limiting, depending on how the lease has been drafted and what you want to do with your renovation.
You should have been provided with a copy of the lease when you purchased your home. If you weren't - or you've misplaced it - the freeholder should be able to send you a copy. If that avenue of inquiry is proving difficult, don't worry, copies of most leases are held by the Land Registry. You can order a paper copy of your lease using form OC2 for a fee of £7.
Unfortunately the Land Registry only offer paper copies of leases, sent by post, and only accept cheque or postal order as payment from non-business customers - pretty archaic in the 2020s, and quite a contrast to their very convenient online service for ordering title information. There are, however, many companies online who will order a copy of your lease from the land registry on your behalf that do accept credit or debit cards, and will send you an electronic copy of the lease by email (for example landregistry-titledeeds.co.uk). They charge a premium over the Land Registry, but in this case you are getting a much more convenient service for the extra money.
If you don't own the property yet but are looking at a potential purchase then the vendor's estate agent should be able to provide a copy (or you could order your own as above). If you move ahead with the purchase it would also be a good idea to negotiate any changes to the lease, and/or get your freeholder's pre-approval for your renovation, as part of your agreement to purchase the property.
Step 2: Review the lease
The leaseholder is also called the tenant or a lessee.
The freeholder is also called the landlord or lessor.
A covenant is an obligation, which could be from a freeholder to leaseholder, or vice versa, or from one leaseholder to another leaseholder.
Licence or consent means permission.
Once you have the lease the first part to check is the description of the demised premises, which sets out the physical limits of the leased property. Typically, this includes everything within the external walls, including the plaster to the walls, but not the external walls themselves. Floorboards or flooring tiles are usually included, but not the underfloor structure. The description may reference a drawing, which you will need to review alongside the text, as in the example below.
Example description of the demised premises from a lease.
As Darran Smith explains, “If you want to add an extension and the description of the leased property does not include this area then you will probably have no right to carry out the works.”
Next, when you review the lease, look for the word alter or alterations, which is commonly used in the types of clauses that could restrict your renovation.
According to Darran Smith, the most common clauses restricting alterations are:
Qualified prohibition (i.e. needing consent) to non-structural alterations
Absolute prohibition on external or structural alterations (including making any new openings/doors)
Restrictions if the flat’s EPC might be adversely impacted.
Most often the lease will state the types of alterations for which you will need permission from the freeholder. For example, the lease for one of our projects included restrictions on making 'any alteration whatsoever in plan or elevation… either internally or externally… without… the consent in writing of the Landlord its Architect or Surveyor'. Clearly this means that any renovation that would change the layout of that flat explicitly required permission.
Example clause from a lease setting out the limits on alterations.
A lease may include some absolute prohibitions, for example a prohibition on making any alteration to the structural walls. Under the terms of the lease it is impossible for the freeholder to provide their permission for a prohibited alteration, even if the lease states elsewhere that alterations are possible with the freeholder's consent, as shown by the recent Duval v Randolf Crescent Ltd court case.
The only option then would be to agree a change to the lease with the freeholder, which, if there are mutual enforceability covenants, would also need the consent of the other leaseholders (see below). “If this was agreeable to all parties you would need to change your lease and probably your other leaseholders’ leases to mirror the changes, which could be quite a costly and lengthy process” Darran explains.
Sometimes the lease will say nothing at all about alterations, though this is unlikely. In that case you would not need the freeholder's consent for any renovations within your demise. You would still need consent for alterations that affect parts of the building outside your demise.
A lease can include covenants with other leaseholders in a building that require you to get their consent as well. This is known as a mutual enforceability covenant. Look for terms that:
require the freeholder to enforce any covenants at the request of a leaseholder
give leaseholders rights to enforce clauses against other leaseholders
In these instances you may also have to get the consent of your fellow leaseholders for your proposals.
A final point to check in the lease is whether it includes a clause that states that the freeholder 'may not unreasonably withhold consent' for alterations. Having this clause in place may make discussion with the freeholder more straightforward, but even in leases where it is not explicitly stated it is an 'implied term' under the Landlord and Tenants Act 1927. This means that no freeholder may unreasonably withhold their consent to alterations proposed by their leaseholder, assuming that those renovations have not been absolutely prohibited by the lease (see above).
Note that, unless stated otherwise in the lease, this only applies to alterations to your demise. When it comes to alterations to parts of the building that belong to the freeholder (for example, the structure and external walls in most leasehold flats), then they can withhold their consent.
If you're unsure about the meaning of any part of your lease you can consult an advisor at the Leasehold Advisory Service.
Step 3: Design the renovation
Once you've reviewed the lease and established what restrictions it places on your ability to alter your property, the next step is to decide on your brief. The restrictions of the lease will form a part of the brief, but the rest is up to you. Think of it as your wish-list for the project. A designer (such as Preview Studio, an architect, or a renovation design and build company) will take your brief and work with you to come up with a design that ticks off as many of the points on your wish-list as possible, whilst also working within the restrictions of the planning system and building regulations.
The design doesn’t have to be fully detailed at this stage - a sketch/concept-level design would be enough to understand the rough scope of work and which parts of the existing building will be affected, which are going to be the most important factors for your freeholder.
How well the design works will have a huge impact on the success of your renovation and your enjoyment of your finished home, but good design is too big a topic to cover in this article!
Step 4: Ask for permission from the freeholder (and the other leaseholders if needed)
With your design in hand you are now ready to go to the freeholder and ask for their permission. While you could ask for permission without a design, it is much easier to agree on a particular proposal shown on a drawing than get a theoretical open-ended permission for alterations.
Write to your freeholder or management company, and include:
A description of your proposed renovation and how it will improve the property.
A statement that you will be hiring a structural engineer to review the proposals and design the structure to ensure the safety and structural integrity of the building.
Assurance that your team will minimise the disruption to neighbouring residents, potentially offering limits on the times that construction work can take place.
Copies of the plans drawn up by your designer, and any other supporting material you have.
The legal term for the permission you are asking for is 'licence for alterations' or 'licence to alter', which could be in the form of a formal licence drafted by a solicitor, but all you need is the agreement of the freeholder in writing to your proposals.
As Darran explains:
“The licence/agreement will contain various obligations on you that you will have to comply with and failure to do so could mean your consent is revoked or your lease could be forfeited. The obligations will vary but key points would include:
Carrying out the works in accordance with legislation and to the freeholder’s (or their surveyor’s) satisfaction
Putting a time limit on finishing the works (as the freeholder will not the works to continue for years)
Arranging separate insurance, notifying the existing building insurers and possibly paying any additional premium costs
Removing the works at the end of the term if the freeholder requests
You should ensure you keep the licence as you will need to produce this if you choose to sell your flat in the future.”
The same law that prevents freeholders from unreasonably withholding their consent for alterations also prevents them from asking for payment for their consent. A freeholder can, however, ask the leaseholder to pay their reasonable costs incurred in granting consent. This could include:
Surveyor's fees
Solicitor's fees
General administration charges
Any lender’s fees
You can challenge unreasonable costs at a tribunal, but if you are considering going down this route consult the Lease Advisory service first, as it could be a long and complicated process.
Just as a freeholder can withhold consent for alterations to parts of the building outside of your demise, they can also ask for payment for that consent. This is something to bear in mind if your proposal involves alterations to the external walls or structure or an extension - you may have to negotiate to get your permission! “If you are building an extension or an additional part outside your demise then you may also need to consider varying the description of the “demised premises” in your existing lease or being granted an additional lease of the new area as you will want to have the ability to sell the extension in the future,” explains Darran.
If you own part of the freehold you will still need to get permission from your co-freeholders for your proposals, if required by your lease.
If there are mutual enforceability clauses (see above) then you may need to get permission from your fellow leaseholders too.
Step 5: Get planning permission
With your freeholder's consent you can move on to the next consent on the list: The consent of the local planning authority, your council.
For extensions to flats you - or your designer - will need to make a planning application. As part of the application they will at a minimum submit:
Plans showing the location of your home
Existing and proposed floor plans
Existing and proposed elevations
The application form including ownership certificate
They will probably also have to submit a Design and Access Statement explaining the design and how it relates to the local context. Your local council's website will detail the exact requirements that apply in your area.
Some home extensions are covered by householder permitted development rights, but these only apply to individual 'dwellinghouses'. Buildings with multiple dwellings within them, such as blocks of flats or house conversions, are excluded, meaning you will need to apply for planning permission for any extension. Permitted development rights also don't apply in conservation areas.
If your renovation is limited to the interior of your property then you won't need planning permission as this isn't considered development.
If your home is in a listed building then you will need listed building consent for most building work regardless of whether you need planning permission. Even if you're only proposing internal renovations you should consult with the conservation officer at your local authority and check if you need to make an application for listed building consent. Remember listed buildings are legally protected and unauthorised alterations or demolitions are criminal offences. Applications for listed building consent have similar submission requirements to applications for planning permission, and you will have to submit existing and proposed drawings and a Design and Access Statement as a minimum.
Minor planning applications and applications for listed building consent should be decided within 8 weeks.
Step 6: Inform your mortgage lender and insurance company
Check the terms and conditions of your mortgage and you will likely see a requirement to ask for the lender’s permission before making certain alterations to the property, such as changing the structure or building an extension. Or, there may be a clause stating that you must not change the structure or add to your property in a way that reduces its value. If your mortgage has conditions like either of these examples, then you should ask for your lender’s permission before starting any construction work. The lender’s main concern is that the property retains its value, so as long as your proposals look likely to achieve this, getting their consent is more of a formality, though an important one.
Extracts from the mortgage terms and conditions of Nationwide Building Society (left) and Halifax Bank (right), with relevant clauses highlighted.
The lender will also require you to get all the necessary permissions for the work, so informing them once you have planning permission in place (if needed for your proposed renovation) makes sense. Just as when you contacted the freeholder, the lender will likely also want a detailed description of your proposals along with plans and other supporting material.
Your home insurance likely has similar clauses, and not informing your insurer could invalidate your cover.
Step 7: Party wall consent
If your proposed renovation includes work along a wall or floor shared with a neighbouring owner then you will need to tell them about it with a Party Wall Notice, and get their consent for the work that affects the shared structure. As explained on this gov.uk guide, 'Your neighbours can’t stop you from making changes to your property that are within the law, but they can affect how and when your works are carried out.'
It is almost always helpful to discuss your proposals with your neighbours before submitting a formal Party Wall Notice. You could do this while developing the design for the renovation with your designer, which would allow you to talk about the consultation process you’ve undertaken within the Design and Access Statement submitted as part of the planning application, if one needs to be made (see above).
A good time to submit the Party Wall Notice would be around the time you receive your planning permission, as the party wall process can be time consuming, and you must give notice at least 2 months before starting building works. If you live in a leasehold property there is a good chance your neighbour also does. You have to inform all adjoining owners, which could include both leaseholders and freeholders.
There is no set form for a Party Wall Notice, but to be valid it must be submitted in writing and include certain key information:
A description of what you plan to do
The date when you propose to start (which must be after the 2 month notice period)
Your name and address
The address of the flat you are renovating
The date
While not a requirement, it is a good idea to state that it is a notice under the provision of the Party Wall Act. The UK government has letter templates you can base your notice on. It is also a good idea to include drawings to make your proposals easier for your neighbour to understand.
Formally notifying your neighbours starts a process with a strict timetable (explained clearly on the gov.uk site here). The adjoining owner can either give their consent in writing or they can refuse consent, which begins the dispute resolution process. The dispute resolution process will also begin if your neighbour doesn't respond within 14 days. In those cases then at least one (but potentially three) party wall surveyors will have to be appointed - one surveyor if both you and your neighbour can agree on whom, and if you can't then you will each choose your own surveyor and those two will choose a third. The surveyor or surveyors will resolve the dispute fairly and draft a party wall award, a document that sets out the when and how the building work will be carried out.
You can choose to hire a party wall surveyor from the beginning of the process, but if your neighbours refuse consent you will have to hire one.
Step 8: Building regulations approval
Building regulations approval, also called building control approval, is the final type of permission you will need for your flat renovation (though see the information below about HSE notifiable projects). Like planning permission, the power to give building regulation approval is held by local authorities, but unlike planning permission, in the case of building control there are also private sector approved inspectors who offer an alternative to the local council.
If the renovation work is simple, then you may be able to make the application by submitting a 'building notice', which is quicker than the alternative 'full plans application', and allows work to start after two days. Under this system the building control body does not review the proposed building work before it starts, so if the proposals don't comply with the building regulations you may have to correct it, at your cost. Some local authorities will only accept full plans applications for work to flats.
A full plans application involves submitting detailed drawings and giving the building control body time to assess the information and approve it, or request more detail or changes in order to comply with the building regulations. This can take between 5-8 weeks. Though slower than building notice this is a safer choice.
Either way the building control body will provide an inspection framework and at certain key stages during construction building control officers will come to inspect work on site. Once they are satisfied that all work complies with the building regulations, they will issue a completion certificate.
HSE notifiable projects
For projects that will both take longer than 30 days to complete and involve more than 20 works at any one time, OR exceed 500 person-days of work, the Health and Safety Executive will need to be notified with an F10 form.
Whether this is true of your proposed renovation will depend on its size and complexity. While making the notification is the duty of the client, you can ask someone else (like the designer or contractor) to do it instead.
Conclusion
There are potentially a lot of hoops that a flat-owner has to jump through to renovate their property. It may be tempting to rush things but given the costs and risks involved with construction work it is always better to plan ahead and do things right first time. Make a checklist of all your necessary permissions the outset and tick each one off as you go through the process. Your reward at the end of all the work will be a wonderful home, tailored to your needs and with your own unique stamp on it.
Ready to start your flat renovation journey? Preview Studio can review your lease and design a flat renovation within its restrictions. Get started with us from only £350, including £50 lease review.
[The content of this article is for information only and you should seek legal and planning advice for your particular circumstances.]