Deed of variation - Preview

by Practical Law Property

A standard document providing a framework deed of variation for use where a landlord and tenant in England and Wales have agreed to vary the terms of a lease. This document is supplemental to the original lease and can be adapted to make a wide variety of changes, such as the deletion, replacement, or addition of clauses. This deed also provides for a tenant's guarantor to consent to the variations, which is crucial for ensuring that its guarantee and other obligations remain fully effective and are not unintentionally released. A key focus of this document is the significant risk of a deemed surrender and regrant, which can occur if a variation extends the lease term or alters the demised property (see Practice note, Deemed surrender and regrant of a lease). The drafting guidance highlights the serious and unintended consequences this can have for both parties, including for stamp duty land tax (SDLT), security of tenure under the Landlord and Tenant Act 1954, and the release of former tenants and guarantors under the Landlord and Tenant (Covenants) Act 1995.