Licence to Alter Heads of Terms
This Licence to Alter Heads of Terms template is designed to ensure that the landlord and tenant agree all significant points of principle regarding a tenant’s proposed alterations before the landlord issues a Licence to Alter for signature.
Commercial leases tend to prohibit the making of alterations without the landlord’s consent. During the term of a lease, the landlord may well receive a request from the tenant for consent to make alterations to the premises. The landlord’s consent is usually given by way of a formal licence to alter.
Usually, the landlord will be under a duty “not to unreasonably withhold or delay consent”. The landlord must therefore deal promptly with the tenant’s request for consent and must either agree that consent will be given or give reasonable grounds for refusing consent. If consent is to be given, the Heads of Terms template to record the agreed terms before the landlord prepares the draft Licence to Alter.
The heads of terms are suitable for any type of commercial property, including shops, restaurants, offices and industrial premises. They can be used in conjunction with the Licence for Alterations (for significant works) or the Letter Licence to Alter (for more minor works).
The heads of terms prompt the parties to record administrative information, such as their contact details, and details of the lease, and to set out what has been agreed in relation to the proposed alterations. Plans and specifications showing the proposed works should be attached to the heads of terms.
Tenants should refer to the Protocol for Applications for Consent to Carry out Alterations when making an application for consent to make alterations to premises. The Protocol can be found at http://www.propertyprotocols.co.uk.
This template is duplicated in the Commercial Property Management group of documents under Consents to Alterations.
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