Teleport outside the battle tower ... turn left to go the same direction you did when you first enetered the tower....towards the top of the hill....there is enough room to transform in that area.
Worked for me anyway.

In the Fjords the cliff sides usually have stone outcroppings at the edges of the cliffs. I've found that I never get the denial if I'm out on the stone part of the cliff. Sometimes I'll get a running start and jump to transform in the air.