Lease Extension Agreement

Summary

This precedent is an agreement to extend the "term" (and possibly the "terms") of an existing lease. The deadline for the original term is elongated without the requirement of redrafting the lease from scratch. The rent is also increased accordingly to reflect higher market prices going into the future. An extension of the lease, as opposed to a renewal, prevents "novation" or the technical creation of a "new lease". This precedent contains practical guidance and drafting notes. A commercial lease usual sets a very specific a mount of time for the "Term" of the lease. The tenant is given the right to occupy the leased area for a specific time from commencement of the lease to the end date of the lease. Very often, the lease may contain provisions which allow for an extension or multiple extensions of the terms and conditions of the lease going many years into the future and beyond the original time limit for the lease. The Term may start as 5 years with an "option to renew or extend ...