Alterations Flashcards
What happens if the lease is silent on alterations?
Tenant is free to carry out alterations
What is the doctrine of ‘waste’?
Tenant cannot carry out alterations which reduce the value of the premises
Why do institutional landlords want to control tenant’s alterations?
To avoid issues such as premises being less appealing to future tenants
What are typical provisions in an FRI lease regarding alterations?
- Type of alterations permitted
- Whether landlord’s consent is needed
- Whether they must be reinstated at the end of the lease term
What is an Absolute Covenant Against Alterations?
Alternations are not permitted; requests can be put to landlord but no obligation to consider them
This provides the landlord with complete control over alterations.
What is a Qualified Covenant Against Alterations?
Alterations are only permitted with landlord’s consent
What does a fully qualified covenant entail?
Landlord must act reasonably in deciding to withhold consent
What does S19(2) LTA1927 do?
Converts a qualified covenant into a fully qualified covenant if the proposed alterations are improvements from the tenant’s point of view
What is a Licence for Alterations?
Consent for alterations documented in a licence that includes various details and covenants
This formalizes the agreement between landlord and tenant regarding alterations.
What obligations are typically included in a Licence for Alterations?
- Carrying out works in compliance with landlord’s requirements
- Pay landlord’s costs in dealing with application
- Obtain necessary consents
- Reinstate premises at end of term
What is a tenant’s statutory right to carry out improvements?
Helps tenants circumvent even absolute covenants against alterations
What can a tenant do under s3 LTA1927 to carry out improvements, even if there is an absolute covenant?
Serve notice of intention to carry out improvements
This is a legal requirement that initiates the process.
What can a tenant do if the landlord refuses consent for improvements after a s3 application?
Apply to court for permission
When will the court grant permission to make alterations after a tenant has applied under s3 LTA?
- Adding to letting value of property
- Are reasonable and suitable
- Will not diminish value
What happens if the landlord does not object within three months of receiving a s3 LTA notice?
Tenant can carry out the improvements
What may a landlord offer instead of granting permission for improvements after receiving a s3 notice?
To carry out the works itself and increase the rent
If the LL offers to carry out the works themselves and increase the rent after a s3 notice, what can the Tenant not do?
Ask the court for permission
