Varying a Lease? - Take note!
Published 10 September 2018
If you have agreed with your tenant to vary the terms of a lease this can be effected by a deed of variation, but don't forget to consider the following:
- Is a variation actually necessary? Can you grant the tenant a personal concession instead?
- If there is a guarantor, they should be a party to the deed of variation. Consider including a direct indemnity from the guarantor in the deed.
- You cannot increase the demise by a deed of variation. Consider instead a supplemental lease for the additional space, or surrendering the existing lease and granting a new lease for the new demise.
- You cannot extend the term by a deed of variation. Consider instead a reversionary lease to commence when the existing lease expires, or surrendering the existing lease and granting a new lease for the new term.
- Does the variation need the consent of a superior landlord or lender?
Please get in touch if you would like any further advice on this.