Commercial leases are the backbone of landlord-tenant relationships. They detail the terms for property usage, rent, and tenancy duration.

However, misconceptions frequently arise when modifications to these leases are considered, particularly when extending the lease term, adding space, or changing the tenant.

These misunderstandings can result in unintended legal and financial consequences.

Below, Emily Sutherland, a Senior Associate in the Commercial Property Law Team at Myerson Solicitors, addresses some of the most prevalent misconceptions and provides guidance on how to avoid common pitfalls.

Misconception 1: Extending the Lease Term Through a Variation
It is not uncommon for landlords and tenants to agree to extend the lease term during the tenancy. Many mistakenly believe that this can be done simply by varying the existing lease through a deed of variation.

However, from a legal standpoint, extending the lease term via variation effectively triggers a surrender and regrant. 

This means that the original lease is considered surrendered, and a new lease is issued under the same terms, with the only change being the new expiration date. While this may appear a convenient solution, it can lead to several complications.