Variation of Lease

A lease is entered to or assigned when the tenant enters into possession of the premises with the consent of the landlord or starts paying rent, or the lease or assignment is signed by all parties, whichever occurs first.

Often during the term of an existing Lease, that parties agree on various changes to the terms of the Lease and any options, and these changes would be recorded in the Variation of Lease.

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Often during the course of a lease term, particularly a long lease term or where previous renewals of lease may not have been prepared, the parties agree on various variations to the lease term such as rent amounts payable, additional option periods, various works to be undertaken by either of the landlord or tenant and other such matters. This does not have to take place at the renewal of the lease and may occur at any stage. Save for the amendments made in the variation of lease, the existing terms and conditions of the present lease remain in place.

Occasionally at the commencement of a lease, or during the term, the tenant by agreement with the landlord agrees to formally sub-let all or part of the premises for the remainder of the term and/or any renewal periods. The Retail Leases Act indicates that a landlord can claim the reasonable legal or other expenses incurred in respect of a sub-lease which may well include the preparation of the sub-lease if that is more expedient than the landlord having to peruse and approve a tenant is proposed sub-lease. The landlord is not permitted under the Retail Leases Act 2003 from claiming costs for the negotiation, preparation or execution of a lease or the landlord’s compliance with the Act, however if a variation is requested by a tenant, it may be possible to seek payment of the variation costs from the tenant under various circumstances.