Common Misconceptions About Varying A Commercial Lease

Landlords and tenants often agree to "extend" or "add on" some additional floor space to an existing lease during the term of an existing lease.

It is a common misconception that such changes might be achieved by varying the lease and documented in a deed of variation; however, this can result in undesirable consequences for both parties, and care must be taken to avoid the pitfalls. Our Commercial Property Experts explain how you can do this.

What Happens if I Vary My Lease To Extend The Term?

A variation of a lease that increases the length of the term will take effect as a surrender and regrant, meaning that the existing lease would be surrendered, and a new lease would be regranted on the same terms save for the expiry of the term.