Lease Addendum To Extend Term Template for England and Wales

A Lease Addendum to Extend the Term is a written agreement that prolongs a tenancy beyond its original end date, preserving the existing terms while recording the new expiry date. It is used when a landlord and tenant wish to continue their arrangement without the administrative cost of granting an entirely new lease. It is particularly common in commercial lettings and fixed-term residential tenancies.

The Renters' Rights Act 2025 converts existing fixed-term assured shorthold tenancies to periodic tenancies in England, removing the fixed end date. As a result, a formal extension addendum becomes less common for residential tenancies, since the tenancy continues automatically on a periodic basis. Landlords and tenants who want to agree a defined period should use a new tenancy agreement rather than an addendum.

Yes. Under the Law of Property (Miscellaneous Provisions) Act 1989, any variation that extends the term of a tenancy must be in writing and signed by both parties. An oral agreement to extend a lease is unenforceable. Without a written and signed addendum, the tenant may be treated as holding over on a statutory periodic tenancy, which carries different notice requirements and no fixed term.

A commercial tenant who occupies after the lease expiry and whose tenancy is protected by the Landlord and Tenant Act 1954 continues to occupy under the Act until either party takes steps to end or renew the tenancy. The tenant can apply to the court for a new lease. Where the 1954 Act applies, simply holding over does not give the tenant an extended term at the same rent automatically.

Extending a commercial lease may trigger an SDLT obligation if the extension, when combined with the original term, takes the total chargeable term beyond the initial threshold or into a new rate band under the Stamp Duty Land Tax Act 2003. Landlords and tenants should seek advice on SDLT before agreeing to a significant extension, particularly where annual rent is above the nil-rate threshold.

It should state the new end date, whether the rent is being changed as part of the extension, any updated break clause provisions, and the date from which the extension takes effect. It should confirm that all other terms of the original lease remain unchanged. Both parties should sign and date the addendum, and each should retain a copy alongside the original lease.

Yes, provided the tenant agrees. A lease extension addendum can include a revised rent figure as part of the negotiated terms. In commercial leases, the extended period may include a new rent review cycle. In residential tenancies, any rent increase agreed as part of the extension must comply with the Housing Act 1988 and the Renters' Rights Act 2025 restrictions on frequency and process.

Under the Land Registration Act 2002, leases granted for a term exceeding seven years must be registered as a legal estate. If an extension takes a lease's total term past seven years (measured from the original grant date), the extended lease may need to be registered. Failure to register means the lease takes effect only as an equitable interest, which may not bind a subsequent purchaser of the freehold.