General L&T Flashcards
What is a deed of variation?
Deeds of variation are LEGALLY binding documents that MODIFY the TERMS of an EXISITING lease between a landlord and tenant. It is important to note that changes made by deed become permanent, enforceable terms of the lease that will apply to future landlords or tenants of the property.
Why are deeds of variations used?
They help remove the impracticality and costs of creating an entirely new lease to DOCUMENT REVISED terms.
Why might you need a dead of variation?
Whether you are a landlord or tenant, overtime your needs and objectives may evolve as market conditions and business priorities change. Some of the original terms may become unsuitable for your purposes. They help keep the lease commercially relevant. As such, varying the lease provides flexibility, continuity and stability for both parties. For instance, avoiding the need to exercise a break clause and move business location if the lease terms are no longer suitable.
