Licence to Alter: The Landlord Approval Process Explained

What a licence to alter is

A licence to alter (LTA) is the landlord's formal consent for tenant-initiated alterations to the demised premises. It's required under virtually every London commercial lease — the alterations covenant is one of the three principal covenants (alongside rent and repair).

The LTA documents: (1) what's being altered, (2) what standard of work, (3) whether reinstatement is required at lease end, (4) the tenant's indemnities to the landlord. It's signed by both parties and sits alongside the lease.

Typical LTA timeline

Plan for 4–10 weeks from application to signature:

1. Application submission (Day 0)

   Drawings, M&E schedules, method statements, contractor's compliance pack, insurance certificates.

2. Landlord surveyor review (Weeks 1–3)

   Typically Cushman & Wakefield, CBRE, JLL, Colliers, or Knight Frank on behalf of the landlord.

3. Queries / amendments (Weeks 2–5)

   Typical iterations: fire-stopping drawings, M&E commissioning evidence, structural sign-off letters.

4. Heads of terms negotiated (Weeks 4–6)

   Reinstatement scope agreed, undertakings in respect of landlord's costs, LTA special clauses.

5. Legal drafting and execution (Weeks 5–8)

   Landlord solicitors draft LTA; tenant solicitors review. Both parties sign.

6. Works commence (Week 8+)

   Often with landlord's 'consent in principle' letter allowing early mobilisation during final LTA execution.

What the landlord's surveyor actually looks for

• Structural integrity — no loading beyond floor design, no penetrations compromising structure
• Fire compartmentation — any wall, ceiling or floor penetrations must maintain compartment ratings (FIRAS-certified works)
• M&E capacity — new loads don't exceed riser, DB or plant capacity
• Compliance — Part B, Part E, Part L, Part M as applicable
• Reversibility — listed buildings and some estate-managed buildings require reversible alterations
• Contractor competence — insurance, CHAS/Constructionline, track record on estate
• Reinstatement scope — what will be reinstated at lease end

Fees

Tenant typically pays:

• Landlord surveyor fee: £2,000–£8,000+ on a fixed fee or time-charge basis
• Landlord solicitor fee: £2,500–£6,000+ fixed fee
• Registration fees: nominal (Land Registry only if lease is registered)
• Own solicitor fee: typically £2,500–£5,000 for LTA review

Total LTA cost for a standard CAT B fit-out: £7,000–£20,000. Budget for it from day one of the project.

How to accelerate the process

1. Apply early

   Submit LTA application at RIBA Stage 3 (design development), not at Stage 5 (pre-construction). This puts the 4–10 weeks in the design phase, not on the critical path of construction.

2. Use pre-approved contractors

   Estate-managed buildings (Broadgate, CWG, King's Cross) maintain approved contractor lists. Using one of them removes a major review item.

3. Bring the M&E schedule up-front

   Most LTA delays are M&E queries. Commission M&E design at Stage 3 rather than value-engineering later.

4. Use standard LTA templates

   Most London institutional landlords have template LTAs. Requesting the standard form (rather than bespoke drafting) saves 2–3 weeks of solicitor time.

5. Consent in principle

   After surveyor approval but before LTA execution, request a 'consent in principle' letter allowing mobilisation. Typical 1–2 week saving.

Common LTA pitfalls

• Works commencing pre-LTA — tenant breaches the alterations covenant. Landlord can serve notice to remedy; in extreme cases seek to forfeit the lease.
• Scope creep post-LTA — additional alterations require amendment or fresh LTA. Plan scope early.
• Reinstatement ambiguity — if LTA doesn't clearly specify reinstatement scope, dilapidations at lease-end become a negotiation.
• No photographic record — pre-works photos protect against disputed existing-condition claims at dilapidations.

What we do

Our Office Fit-Out team prepares LTA-ready drawings, M&E schedules, method statements and compliance pack as part of our standard pre-construction package. We manage landlord-surveyor liaison through to consent-in-principle and mobilisation.

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