A lease variation refers to any change or modification to an existing lease agreement. This can include adjustments to:

• Rental terms (e.g., rent increases, decreases, or rent-free periods)
• Lease duration (e.g., extending or shortening the lease term)
• Permitted use of the premises (e.g., changing the nature of the business allowed)
• Other conditions (e.g., maintenance responsibilities, security deposit terms, etc.)

Lease variations are often negotiated during changes in circumstances, such as market conditions, tenant expansion, or other mutual agreements between the landlord and tenant.

Depending on what is being varied, there are several key legal issues you should consider, these include:

• Compliance with the original lease terms - some leases include clauses that restrict or govern variations and this should be reviewed
• Consent requirements – some variations may require consent from third parties like lenders or the local council
• Documentation - a lease variation must be properly documented, often via a Deed of Variation, to ensure it is legally binding
• Impact on existing rights and obligations - changes to a lease can lead to flow on impact on other terms of the lease such as insurance requirements, guarantees, or termination rights, and these should be considered
• Registration requirements - for some leases, variations may need to be registered with the WA land information authority (Landgate)

How West Perth Legal Can Help You with Lease Variation?

At West Perth Legal, we understand the intricate legalities of lease variations and are committed to protecting your interests. Here’s how we can assist you:

• Review and advice on an existing lease -we review your existing lease agreement to assess the implications of the proposed variation.
• Negotiate a lease variation - our team assists in negotiating the terms of the variation to achieve a fair and favourable outcome for you.
• Draft the Deed of Variation - a variation to a lease is usually documented via a Deed of Variation. It is important to check your original lease for any variation clauses. A lawyer will prepare a Deed of Variation and ensure it is consistent with the original lease.
• Third-Party Approvals - if required, we will liaise with lenders, property managers, or other stakeholders to obtain the necessary consents for the variation.
• Registration of lease – we provide legal advice on if a variation of lease needs to be registered with the WA land information authority (Landgate) and if so, we provide registration services for our clients.