Business Lease Extension Agreement
This Business Lease Extension Agreement can be used where the Landlord and Tenant have agreed to enter into a new lease which is on the same terms as the previous lease except for the term and the rent.
This very simple Extension Agreement creates a new lease by incorporating the terms of the previous lease and specifying a new term and rent. Its use is only recommended for relatively short term extensions, up to a maximum of 3 years.
If the term of the new lease is to be longer than 3 years, or there is to be a rent review, or the terms of the lease are to be altered (other than the term and rent), one of our comprehensive Lease templates should be used instead.
In Clause 1 the Landlord grants the lease to the Tenant.
Clause 2 incorporates the terms of the old lease into the new lease.
Clause 3 is an optional clause dealing with exclusion of security of tenure. If the old lease was “excluded”, the new lease should be excluded too. Reference should be made to our Guidance on Excluding Security of Tenure and the associated forms.
Clauses 4 and 5 contain optional break clauses (termination rights) for the Landlord and Tenant. These clauses should be amended or deleted as appropriate. The Tenant’s break option is conditional on rent have been paid up to date, the Tenant giving up possession of the property (i.e. vacating) and the Tenant not leaving any underleases in place. If these conditions are not satisfied, the Tenant’s break will not be effective and the lease will continue. If the Tenant is in breach of other terms of the lease, e.g. necessary repairs have not been carried out, the break will be effective but the Landlord will retain the right to sue the Tenant for any breaches of the lease.
The Extension Agreement should be executed as a deed. Various types of execution clauses are included and the parties should choose the appropriate clauses.
Optional phrases / clauses are enclosed in square brackets. These should be read carefully and selected so as to be compatible with one another. Unused options should be removed from the document.
This Business Lease Extension Agreement is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.
Once you have purchased access to the appropriate document folder click on the “Download Document” button below. You will be asked what you want to do with the file. It is recommended that you save the document to a location of your choice prior to viewing.
Business Lease Extension Agreement is part of Property Documents. Just £35.00 + VAT provides unlimited downloads from Property Documents for 1 year.