Sometimes a commercial tenant only checks their lease once something has gone wrong – often because the rules around alterations weren’t fully understood from the outset. 

Taking time to understand these requirements can help prevent delays, unexpected costs and disputes.

A standard lease allows the tenant to occupy premises in return for paying rent and complying with the lease conditions. But the property remains in the landlord’s ownership, so tenants must understand when consent is needed before making any changes. A tenant cannot simply carry out alterations as it wishes – landlord consent may be required.

Leases typically prohibit alterations to the exterior or the structure of a property, which is standard practice. Internal or non-structural alterations are usually permitted, provided the tenant obtains landlord consent. That consent may be at the landlord’s discretion, but the landlord must act reasonably and reply within a reasonable timeframe.

Landlords can request detailed specifications, drawings and plans before giving consent, so being prepared can help avoid delays. They may also impose additional conditions, including reinstatement obligations.

Where consent is required, the terms are usually set out in a formal Licence for Works agreement. This document sets out the tenant’s obligations before, during and after the works, along with details such as completion dates and insurance requirements. All relevant plans and specifications will be attached.

Some minor, uncontentious alterations – such as internal demountable partitions –can sometimes proceed without consent, provided they are reinstated at the end of the lease.

What happens to alterations when the lease ends

At the end of the lease, the general rule is that the tenant must return the premises to the condition they were in when first occupied. However, there are exceptions, and the parties may agree that certain alterations do not need to be removed – particularly where they improve the property and are better left in place.

If the tenant carries out alterations in contravention of the lease, this will usually constitute a breach of contract – as will leaving the premises without completing any required reinstatement at the end of the term (unless otherwise agreed).

Consequences can include dilapidations claims and substantial damages, which may even cover rent for the period while reinstatement works are carried out. Planning ahead is therefore essential –understanding what consents are necessary, ensuring they are properly documented, and being clear about reinstatement obligations at the end of the lease. The cost of obtaining consent is usually modest (a Licence for Works is typically a standard document) and far lower than the expense of resolving issues after the event.

Works can either be taken into account or disregarded at rent review. Ideally, if you have paid for works, you don’t want them to increase your rent as well, so it is important to set this out clearly in writing.

Tenants should also be aware of decorating obligations. Most leases usually requires internal and external decorating at set intervals, and again immediately before the lease ends. As with alterations, failing to meet these obligations can amount to a breach of contract and may result in damages.

Using our checklist to stay on track

Alterations in commercial properties can become complex quickly – which is why we’ve created a practical, step‑by‑step checklist for both tenants and landlords.

It helps ensure the right questions are asked at the right time, reducing risk, avoiding delays and supporting smoother negotiations.

How we can help

It is strongly advised that both parties seek independent legal advice when granting or negotiating consent to reduce the risk of disputes arising later. For more information, please contact the Lindsays Commercial Property team.

For tenants, we can review your lease to confirm whether alterations are permitted and whether landlord consent is required.

For landlords, we can prepare or review a Licence for Works agreement to ensure your position is clearly protected.