Varying a Lease? - Take note!

Published 10 septiembre 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.