Can I make renovations to my leasehold property?

ArchiKei

Feb 11, 20234 min read

This is a seemingly simple question. However, there is no one-size-fits-all answer to it because it depends on several factors, such as which part of the UK you live in (England, Wales, Scotland or Northern Ireland), what sort of housing arrangement you are in (private renting, housing association or council housing), what your tenancy agreement says about renovating, whether you are in a short lease (assured shorthold tenancy), a long lease (leasehold) or a lodger (sharing living space with a landlord), etc. As a result of the complex nature underlying this question and the fact that it is not often an issue tested in court, whether your rental property can be renovated and whether you can be compensated is not always clear.

This article is specifically written for an England audience, and the rules may be different regarding renovating your rental property in other parts of the UK. Renovating includes A) reparations, B) decorations and C) improvements. This article will focus on the improvements part.

Picture Source: Design-for-Me

Should I make improvements to my rental property myself? What should I consider?

Private tenants

Before conducting any improvements or negotiating with your landlord, always consult your rental agreement. The agreement sets the baseline for the rights to make any improvements. It may have explicit terms around conducting improvements/renovations and who will be responsible for paying.

The next thing to understand is these terms of conditions of your agreement can change, but this is down to negotiating with your landlord. Always speak to your landlord directly about the improvements you want to make to your property. It is also essential to get an agreement in writing before you go ahead with the work.

Council or housing association tenants

You need your landlord's written permission for major improvements (e.g. installing a new kitchen, building a conservatory, replacing flooring).

Always check what your tenancy agreement says about improvements. You may need permission for more minor changes too.

Can I ask my landlord to pay compensation for the improvements I have made?

If you live in social and council housing, you have a right to compensation for improvements, and laws are in place to help you get compensation. If you’re in private housing, you don’t have the same guarantee.

If you’re living in a privately rented property, you won’t get to claim compensation for improvements officially. Landlords/freeholders are supposed to keep your house liveable, and you can talk to them about making improvements to your house, but they don’t really have a legal obligation to compensate you if you pay for any work done. It’s advised to always talk to your landlord before having any work done, as you don’t have as much protection as people living in council houses.

When we talk about a tenant’s rights in social and council housing for compensation for improvements, we’re talking about times when you needed to have work done on your house to improve your living standards. The council probably won’t compensate you for cosmetic changes, so if you redecorate the walls or get a new bath because you didn’t like the colour of the last one, you’re unlikely to be able to get any compensation.

Picture Source: TB Plastering

Can my landlord order me to remove (and pay for removing) unpermitted improvements?

For private renters, it should be clear by now that you need your landlord's written permission for any major renovation work. This is true whether you’re a shorthold tenant, leaseholder or lodger. If you don’t get consent from your freeholder (landlord) before undertaking any work, they could potentially make you revert the property to how it originally was, and you will be liable for all costs.

Property alterations without your landlord's consent may also affect your ability to sell the property (if you’re a leaseholder) or get your deposit back (if you’re a tenant of a short lease). For leaseholders, potential purchasers of your leasehold property will usually ask for details and copies of any consents and permissions. Lacking any of these documents may affect the marketability of your leasehold property.

What is the correct procedure for making improvements to your leasehold property?

If you have taken due consideration to the issues discussed and would like to refurbish your leased flat, there are a number of steps you should go through.

1.1. Check your lease

This is the legal basis for your property rights and responsibilities. Every lease is different, and the fact that the document may be worded in legalistic or archaic language can make it challenging to work out the salient points. Generally, landlords compose leases to make structural alterations prohibited, and even a change of internal layout may be prohibited.

1.2. Get a Licence to Alter (LTA).

If you intend to undertake alterations, an LTA is required. This is the formal written consent given by your landlord.

1.3. Serve a Party Wall Notice

If you share a party wall with a neighbour. This is a complex legal process, and you should seek specialist advice, such as a party wall surveyor.

1.4. Obtain Planning Permission

As a tenant, you do not benefit from permitted development rights, unfortunately. For major refurbishments, this means that in addition to an LTA, and Party Wall Agreements, you also need to obtain full planning permission from your local council. If your property is in a Conservation Area or your building is listed, there will be further planning restrictions on alterations.

1.5. Seek approval from your lender

If you financed your purchase of the property through a mortgage company such as a bank, you need to inform your lender about refurbishment plans. While this depends on your mortgage plan, some plans make clear that you need to seek the lender’s formal consent to carry out alteration works.