Varying a Lease? - Take note!

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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:

  1. Is a variation actually necessary? Can you grant the tenant a personal concession instead?

  2. 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.

  3. 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.

  4. 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.

  5. 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.

Authors

Charlie Christie

Charlie Christie

London - Fetter Lane

020 7894 6837

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