A single loft conversion in a London mansion block can now trigger three separate approval processes, two different pieces of legislation, and a fee structure that government ministers have just admitted needs fixing. That is the reality facing flat owners this month, as Westminster moves to rein in the costs landlords and managing agents charge for permission, while the 1996 law governing shared walls stays exactly as it was.
This article explains what the leasehold permission fees cap, alterations licence to alter and party wall London changes mean in practice for anyone planning an extension, loft conversion or internal alteration in the capital, and how the two systems, lease-based consent and statutory party wall notice, fit together.
Key Takeaways
- On 29 September 2026 the government announced plans to cap certain leaseholder and estate permission/admin fees, including those for minor alterations, pet permission, document provision and mortgage change notifications.
- A consultation will decide which fees are capped and at what level, no figures have been set yet.
- Independent regulation of managing agents (licensing, qualifications, conduct standards) is also planned, with further detail to come.
- The Commonhold and Leasehold Reform Bill is due in Parliament before Christmas 2026, but this is separate from, and will not replace, the Party Wall etc. Act 1996.
- Flat owners in London still need both a landlord’s licence to alter under their lease and, where relevant, party wall notices served under the 1996 Act, these are two distinct legal requirements.
Why This Matters for London Flat Owners Right Now
London’s housing stock is dominated by converted terraces, mansion blocks and purpose-built flats where structural work almost always touches a neighbour’s property, a shared wall, or both. For most leaseholders planning works, the practical journey has two checkpoints:
- Getting the freeholder or managing agent’s consent under the terms of the lease (the licence to alter).
- Serving statutory notice under the Party Wall etc. Act 1996 if the works affect a party wall, party structure, boundary wall or nearby excavation.
These are not the same thing, they are not interchangeable, and, crucially, paying one does not satisfy the other.
“A licence to alter is a private contractual permission from your landlord. A party wall notice is a public statutory process that exists regardless of what your lease says.”
The September 2026 Fee Cap Announcement Explained
On 29 September 2026, the government confirmed it intends to cap certain fees charged to leaseholders and to homeowners on privately managed estates. The fee types under consideration include:
- Permission for pets
- Minor property changes and alterations
- Providing documents (such as lease copies or management information)
- Recording a change of mortgage provider
No specific cap amounts have been announced. The government has said it will consult on which fees should be capped and at what level, meaning the final list and figures remain open. Alongside this, ministers set out plans for independent regulation of managing agents, covering:
- A licensing requirement for agents
- Minimum qualifications
- A regulator with power to set conduct and complaints standards
- Powers to withdraw an agent’s licence for poor practice
Further details on both the fee cap consultation and the regulatory framework are still to be published.
What This Means for Alteration Permission Fees
Because “minor property changes/alterations” is explicitly listed among the fee types under review, the administration charge many leaseholders currently pay simply to apply for a licence to alter could eventually be capped. However, until the consultation concludes and a cap level is set, leaseholders and homeowners on managed estates should expect current fee structures, including charges that can feel disproportionate to the admin work involved, to remain in place for now.
Practical note:Fee caps, once set, are expected to apply to landlord/managing agent charges for granting consent under the lease. They will not apply to, or replace, party wall surveyor fees, which arise under a separate statutory regime and are payable by the building owner carrying out the works.
Commonhold and Leasehold Reform: The Bigger Picture
On 7 October 2026, the Prime Minister confirmed the Commonhold and Leasehold Reform Bill will be introduced to Parliament before Christmas 2026. This builds on a draft published in January 2026, which proposed:
- Commonhold as the default tenure for new flats
- Caps on ground rent
- Replacing forfeiture as a means of enforcing lease breaches
Separately, the Leasehold and Freehold Reform Act 2024’s valuation changes are not yet in force. A consultation on valuation rates under that Act closes on 21 October 2026, so leaseholders should not assume enfranchisement or extension costs have already changed.
None of this reform activity alters party wall law. The Party Wall etc. Act 1996 remains untouched by both the fee cap proposals and the leasehold reform bill.
Licence to Alter vs Party Wall Notice: What’s the Difference?
Confusion between these two processes is one of the most common issues flat owners raise with party wall surveyors. The table below sets out the core distinctions.
| Feature | Licence to Alter | Party Wall Notice |
|---|---|---|
| Legal basis | The lease (private contract) | Party Wall etc. Act 1996 (statute) |
| Who grants/receives it | Freeholder/landlord, often via managing agent | Adjoining owner(s) |
| Purpose | Permission to alter the demised premises under lease terms | Protects structural and boundary interests |
| Typical fee | Admin/legal fee set by landlord or agent | Surveyor’s fee, paid by building owner |
| Government fee cap plans | Potentially covered by 2026 consultation | Not covered, statutory process unaffected |
| Timescale | Varies by lease; often weeks | 1 or 2 months’ statutory notice period |
A licence to alter is about whether your landlord agrees to the works happening at all under your lease terms. A party wall notice is about whether your proposed works affect a neighbour’s structural or boundary rights, and that obligation exists even if your landlord has already said yes.
When the Party Wall Act Applies in London Flats
The Act creates notice obligations in three situations:
- Section 1, building a new wall at or astride a boundary (1 month’s notice)
- Section 2, work to an existing party wall or party structure, such as cutting in beams, inserting damp-proofing, or underpinning (2 months’ notice)
- Section 6, excavation within 3 metres (where new foundations go deeper than the neighbour’s) or 6 metres (where a line drawn at 45 degrees would meet the neighbour’s foundations) (1 month’s notice)
For flats, a critical point often missed is that both the leaseholder and the freeholder can be “owners” under the Act. The legislation defines an owner to include anyone with a leasehold interest of more than one year remaining, as well as the freeholder. Practically, this means:
- The leaseholder carrying out works may need to serve notice as the “building owner”.
- The freeholder of the building being worked on, and the freeholder or long leaseholder of the adjoining flat, may all need to be served as “adjoining owners”.
- In a block of flats, it is common for notice to need serving on the freeholder, the flat below, the flat beside, and sometimes the flat above, depending on what the works touch.
Sequencing: Get This Order Right
Flat owners who tackle these processes out of order often face delays, re-service of notices, or disputes that could have been avoided. A sensible sequence is:
- Check the lease for alteration clauses and apply for the licence to alter early, since landlord consent can take time and may come with conditions (such as requiring a schedule of condition).
- Instruct a party wall surveyor to assess which sections of the Act apply once drawings are reasonably settled.
- Serve party wall notices on all relevant owners, this can often run in parallel with, rather than strictly after, the licence to alter process, but works should not start until both are resolved.
- Agree a schedule of condition for the adjoining property before works begin, recording existing cracks, finishes and structural condition. This protects both the building owner and adjoining owner if damage is later alleged.
- Obtain the party wall award (if the adjoining owner dissents or a surveyor is appointed) before starting notifiable work.
Skipping the schedule of condition is a frequent and costly mistake, without it, disputes over pre-existing damage become far harder to resolve fairly.
Fee Pressures Flat Owners Should Expect
While no specific figures have been confirmed for either licence to alter charges or the proposed fee caps, London leaseholders should be aware of two separate cost pressures:
- Landlord/managing agent fees for processing a licence to alter application, which the September 2026 announcement signals could eventually be capped, pending consultation outcomes.
- Party wall surveyor fees, which remain a statutory cost of the works themselves, payable by the building owner, and are not part of the fee cap discussion at all.
Flat owners should budget for both, and should not assume that future caps on landlord admin fees will reduce party wall costs.
Frequently Asked Questions
Does the leasehold fee cap announcement change party wall surveyor fees? No. The 29 September 2026 announcement concerns landlord and managing agent fees, such as alteration permission charges. Party wall surveyor fees arise under separate statute and are unaffected.
If my landlord grants a licence to alter, do I still need to serve party wall notices? Yes, if the works fall within sections 1, 2 or 6 of the Party Wall etc. Act 1996. Landlord consent and statutory notice are independent requirements.
Who counts as an “owner” under the Party Wall Act in a block of flats? Both freeholders and leaseholders with more than one year remaining on their lease can be owners, meaning notices may need to be served on several parties for a single project.
Has the government set a cap figure for alteration permission fees yet? No. The government has only announced that it will consult on which fees to cap and at what level. No amounts have been confirmed.
Will the Commonhold and Leasehold Reform Bill replace the Party Wall Act? No. The Bill, expected before Christmas 2026, addresses tenure, ground rent and forfeiture. It does not affect party wall notice requirements.
Is the Leasehold and Freehold Reform Act 2024 already affecting lease extension costs? Not yet. Valuation changes under that Act are not in force, and the related consultation on valuation rates closes on 21 October 2026.
Conclusion
London flat owners planning extensions, loft conversions or internal alterations face a genuinely two-track approval landscape: a lease-based licence to alter governed by private contract, and a statutory party wall process governed by the 1996 Act. The government’s 29 September 2026 announcement on capping leasehold permission fees, and the Prime Minister’s 7 October 2026 confirmation of the Commonhold and Leasehold Reform Bill, both signal meaningful change ahead for landlord-side costs and leasehold structure generally. None of this, however, alters the party wall notice periods, owner definitions or procedural requirements that have applied since 1996.
The practical next step for anyone starting works is straightforward: review the lease for alteration clauses, instruct a party wall surveyor early to identify which sections of the Act apply, and keep the licence to alter and party wall notice processes moving in parallel rather than treating one as a substitute for the other. Watch for the upcoming consultation details on fee caps, but plan current projects on today’s rules, not anticipated ones.