Can you build an extension on a leasehold property?

If you own a leasehold house or flat – can you build an extension on a leasehold property? What about making alternations? And do you need to get the freeholder’s agreement? We take a look.

Angela Kerr Director, Editor

Can you build an extension on a leasehold property and what permission do you need to obtain? We take a look…

Making alterations to a leasehold property: 9 things you need to know

1. Check your lease for restrictions

Firstly, before considering any form of structural alterations check your lease so that you’ll know if there are any restrictions on the types of alterations you can make to the property; these are usually subject to approval from the freeholder.

2. Getting freeholder consent

The majority of leases require leaseholders to get the freeholder’s prior consent before making substantial changes to a leasehold property. Contact your freeholder about your plans as soon as possible; this may help to avoid delays and extra costs further down the line. If you own a share of a freehold, you will need to engage with your fellow freeholders.

By making contact early, you’ll also get early warning of any potential objections. Even though you may have interpreted the lease as you having the right to extend, your freeholder may have a different interpretation.

If you are on good terms with the freeholder, for example if you live in a house converted into two flats and the freeholder is known to you, and your proposed works are minor you might kick the process off with an email to get agreement to changes. You might want to get legal advice on whether informal consent could suffice.

However, they are within their rights to ask for this agreement to be formalised with a license to alter (this is also called a licence for alterations or LTA), which is a formal agreement between you and the freeholder that details the proposed work. For larger property owners, you will almost definitely need to go through this formal process to obtain freeholder consent.

3. How much does getting a Licence for alterations cost?

There is normally a charge associated with getting the approval. However, according to Schedule 11 of the Commonhold and Leasehold Reform Act 2002 all charges should be reasonable and a leaseholder has the right to challenge the reasonableness of charges. Costs could include such items as: surveyors costs of checking plans and the work itself, solicitor costs for drawing up a formal licence and general administration charges. There will also be additional charges to amend the lease to take into account the new extension.

If you’re asking can you build an extension on a leasehold property, knowing what this cost is in advance will allow you to budget and, if necessary, challenge and costs that may be unreasonable.

But note that the Landlord and Tenant Act 1927, Section 19(2) states that a freeholder cannot ‘unreasonably withhold consent’, so they’ll need valid grounds to reject your construction proposal, such as if your proposed extension would jeopardise the structural integrity of the property or significantly depreciate its value.

However, getting approval often isn’t straight forward and so it’s often best to use a specialist lease solicitor to seek permission on your behalf.

Also, you may need to negotiate with the freeholder and other leaseholders; you may need to provide more detail, make alterations to your plans or agree to additional terms to get approval of everyone affected. When a licence is granted there may be other terms such as the works meeting a certain quality standard.

Get expert advice from our partner leasehold specialists

4. Can a premium be charged as a condition of granting consent for alterations?

It’s not unheard of that landlords will ask for a premium (lump sum payment) in order to grant consent. Whether or not they can do this depends on whether the alterations are just to the leaseholder’s ‘demised premises’ (what is included in the leaseholder’s ownership under the terms of the lease) or whether it involved altering or cutting into the part of the building that belongs to the landlord. For more information, the Leasehold Advisory Service has a detailed guide on this.

If your freeholder requests a premium, it’s a good idea to take specialist legal advice to establish where you stand in terms of your circumstances.

5. Can you make leasehold alterations without consent?

It is not recommended that you make leasehold alterations without consent as you are likely to be in breach of the terms of your lease. This has two consequences:

• You are likely to have trouble selling a leasehold property until consent has been obtained.
• The freeholder may seek damages or apply to court to force you to return the property to its original state at your cost.

6. Can you build an extension on a leasehold property without a party wall agreement?

It depends. You’ll need a party wall agreement if you plan on carrying out any building work near or on a party wall. If you need a party wall agreement, you will need to budget for it. Read more in our guides on Party wall agreements explained and Party wall surveyor costs.

7. What other permission do I need to extend a leasehold property?

Just like with any extension, you’ll need to consider:

Planning permission: Depending on the nature of your extension you may need to secure planning permission. Read our guide Do I need planning permission?

Building regulations: If you’re having work done to your home that will require structural changes or extensive alterations, the chances are you will need building regulations approval before you proceed. Read more in our guide Do I need building regulations approval?

8. What is a structural alteration or addition?

A structural alteration means making changes to any part of the building’s supporting structure. This includes making changes to external walls, bearing walls, the foundations or the roof.

9. What if my landlord wants to make alterations?

If your landlord wants to make structural alterations, for example converting the loft space above your property into another flat, check your lease carefully. For example, it may state that you own the space. It’s advisable to get legal advice from a specialist solicitor.