Questions about what a tenant can install, remove or must reinstate at lease end often cause difficulty, usually because ownership is unclear or records are incomplete. A practical, well-documented approach helps avoid disputes.
Alterations and landlord consent
Most commercial leases restrict alterations and require landlord consent. Whether consent must not be unreasonably withheld depends entirely on the lease wording, as there is no automatic rule implying reasonableness for alterations. Modern leases often include such wording expressly.
Any conditions attached to consent - such as professional fees, method statements or reinstatement obligations - should be recorded clearly.
Ownership issues following alterations
Alterations can change what forms part of the premises and what a tenant must remove or reinstate at expiry. To assess this, the starting point is the lease and any licence for alterations, which may specify who owns installed items and what must happen at lease end. If those documents are silent, a simple rule of thumb can help:
- Items integrated into the premises and intended to stay - for example, partition walls, hard-wired lighting or fitted kitchen units - will usually belong to the landlord.
- Items removable without damage - such as most white goods, carpets and curtains - are generally the tenant’s.
Larger additions - such as mezzanines, extensive cabling or bespoke plant - should be clearly categorised in any alteration licence, confirming whether they are landlord's fixtures, tenant's fixtures or fittings and what happens at expiry.
A tenant’s ability to remove its fixtures (for example, trade fixtures) depends on the lease, so documenting intentions at the outset is important.
Preventing disputes and managing reinstatement
Disputes often arise where works were carried out informally or only surface near lease end. Interim inspections, open communication and early agreement on what will be removed help reduce risk. If a landlord wishes to retain improvements - such as upgraded lighting or cooling systems - this should be confirmed in writing.
Clear records - including photos, plans and copies of consents - make reinstatement far easier. These support any terminal schedule of dilapidations and help ensure obligations are handled efficiently.
If you are a commercial landlord or investor dealing with reinstatement or alterations issues, or have concerns about how tenant works may affect your property, please get in touch with a member of our Real Estate Disputes team or your usual Brodies contact.
