Commercial and mixed use property refurbishment legal issues

Refurbishment is a very common issue for commercial landlords and developers looking to enhance asset value, attract new occupiers, where existing tenants want to carry out significant works, or to meet regulatory demands. From full-scale renovations to targeted upgrades of individual units, projects of this nature require a structured legal approach. The complexity increases where buildings are multi-let, in mixed-use occupation, or only partially refurbished.

Planning stage

Our clients find that it's important to work with us at the planning stage. This starts with title and lease reviews. Where a property is leasehold, the landlord or developer may be subject to restrictions around alterations, use, or access. Even freehold assets are often encumbered by rights of light, covenants, or easements that could affect what work can be done, and how.

A building’s occupation status also plays a major role. Where commercial tenants or residential leaseholders are in place, refurbishment must be carefully managed to avoid infringing on rights to quiet enjoyment or breaching lease terms. Even well-drafted leases providing for landlord works can’t override statutory protections against nuisance or interference.

Planning and Regulatory Compliance

Legal due diligence should also cover planning permission and regulatory compliance. While many refurbishment works may be classed as permitted development, external alterations or material changes of use can require formal consent. Buildings in conservation areas or those that are listed will be subject to additional constraints.

The works must also comply with Building Regulations. This is particularly relevant when upgrading energy performance, altering fire escape routes, or carrying out structural work. Increasingly, refurbishment is also driven by the need to improve EPC ratings under the Minimum Energy Efficiency Standards, particularly as stricter letting thresholds come into effect.

In older buildings, developers should also consider statutory requirements around asbestos and fire safety, both of which often apply as soon as refurbishment involves intrusive work.

Refurbishing part of a building

Refurbishing, for example, a single unit in a shopping centre, or the commercial floors of a mixed-use block, raises additional legal considerations.

Often, the works will impact common parts, shared plant, or structural elements that serve more than one occupier. This brings into play service charge rules, lease restrictions, and rights of access. It may also require consent from head landlords or building management companies. In mixed-use schemes, residential occupiers tend to have enhanced legal protections and heightened sensitivities to disruption, so early engagement is critical.

Managing the construction process

Most refurbishment projects require a formal construction contract.

Legal advice will usually be required to tailor contract terms to account for things like working around existing occupiers, limited site access, and phased or sectional completion.

Agreements may be needed to set out protocols for noise, working hours, or service interruptions. In some cases, rent concessions or temporary relocation arrangements are negotiated to facilitate works.

For projects linked to new lettings, landlords may need to agree specifications and completion standards via agreements for lease. Timing, certification, and coordination between landlord’s and tenant’s works should be handled through clear contractual terms.

How we can help

While every project is different, most commercial refurbishment schemes require legal input across a few core areas:

• Reviewing title and lease documentation to identify constraints or required consents

• Advising on planning status and building regulation compliance

• Drafting or negotiating building contracts and professional appointments

• Managing collateral warranties and consultant liabilities

• Supporting tenant engagement, including licence or variation agreements

• Handling any consents or approvals from head landlords, managing agents or adjoining owners