Deed of variation v licence to alter

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    Deed of variation v licence to alter

    I have noticed recently that the term "deed of variation" is being used a lot in the context of tenants wanting to make alterations.

    A deed of variation is something you use only if you want to change the terms of a lease permanently. It is not what is needed if all the landlord wants to do is consent to something which requires his consent or, if prohibited absolutely, he is prepared to allow. In that case what is needed is a licence to alter. A licence to alter only allows what it says it allows. It does not "create a precedent" or allow further action - see here: https://www.legislation.gov.uk/ukpga...20/section/143.

    Strictly, if the tenant does work without consent which needs it what is required is a deed of waiver - consent is not needed for something which has been done. However, a licence expressed to be in the form of (retrospective) consent will have the same effect.

    #2
    Originally posted by Lawcruncher View Post

    A deed of variation is something you use only if you want to change the terms of a lease permanently. It is not what is needed if all the landlord wants to do is consent to something which requires his consent or, if prohibited absolutely, he is prepared to allow. In that case what is needed is a licence to alter. A licence to alter only allows what it says it allows. It does not "create a precedent" or allow further action - see here: https://www.legislation.gov.uk/ukpga...20/section/143.
    This is a very helpful post to read for layman in this area. Question:

    Does this mean there will be situation where the alternation work covered by the 'licence to alter' does not require a change to the original lease?

    E.g. An extension work at rear garden deminsed to the leaseholder who sought the licence. Nothing alter the demised area. There is only erection of building in the demised area.

    E.g. same as above, the obligation on maintenance of the altered/additional area is covered under the demised area. In addition, it affects other leaseholder's demised area such as making it prone to subject to damage or increase maintenance cost.


    Comment


      #3
      As you suggest, alterations where premises are extended cannot be covered by a standard licence. To avoid future disputes it needs to be agreed who will be responsible for the extension. In most cases the preferred solution has to be to make the leaseholder responsible for the whole of the extension. The licence should be noted on the register of the leasehold title.

      If the extension is onto land not demised a new lease will be needed which can cover everything.

      Comment

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