Lease Extension Agreement Template for Malaysia

A legally binding document governed by Malaysian law, specifically the National Land Code 1965 and relevant state legislation, that formally extends an existing lease agreement between a lessor and lessee. The agreement maintains continuity of the landlord-tenant relationship while potentially updating terms such as rental rates, duration, and other conditions. It must comply with Malaysian property law requirements, including proper execution and registration with relevant land offices where required. The document preserves the essential elements of the original lease while incorporating any new terms agreed upon for the extension period.

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What is a Lease Extension Agreement?

The Lease Extension Agreement is a crucial document used in Malaysian property transactions when parties wish to continue their existing lease arrangement beyond its original termination date. This document type is essential for maintaining legal occupation rights while potentially updating terms to reflect current market conditions or new arrangements between parties. It must comply with Malaysian property law, particularly the National Land Code 1965, and may require registration with the relevant land office. The agreement typically includes details of the extension period, any revised rental terms, and confirmations of existing conditions from the original lease. It's commonly used in both commercial and residential contexts, providing a streamlined alternative to executing an entirely new lease agreement.

What sections should be included in a Lease Extension Agreement?

1. Parties: Identification of the Lessor and Lessee with full legal names and addresses

2. Background: Recitals describing the original lease, its key terms, and the parties' intention to extend

3. Definitions: Definitions of key terms used in the agreement, including reference to definitions from original lease

4. Extension of Term: Clear statement of the extension period and new expiry date

5. Rent and Payment Terms: Specification of rent amount, payment schedule, and any adjustments for the extension period

6. Confirmation of Original Terms: Statement confirming which terms from original lease remain in effect

7. Representations and Warranties: Confirmations by both parties regarding their authority and the property's status

8. Registration: Provisions for registration of the extension agreement with relevant land office

9. Governing Law: Confirmation of Malaysian law as governing law and jurisdiction

10. Execution: Formal execution block meeting Malaysian legal requirements

What sections are optional to include in a Lease Extension Agreement?

1. Modifications to Original Terms: Used when specific terms from the original lease need to be modified for the extension period

2. Renovation and Alterations: Include when specific works are planned during the extension period

3. Change in Use: Required if the permitted use of the property will change during the extension

4. Option for Further Extension: Include if parties agree to grant additional extension options

5. Insurance Updates: Include if insurance requirements are being modified

6. Security Deposit Adjustment: Used when security deposit terms are being modified

7. Service Charge Provisions: For commercial properties where service charge terms need updating

What schedules should be included in a Lease Extension Agreement?

1. Schedule 1 - Property Details: Detailed description of the property including lot number, title details, and address

2. Schedule 2 - Original Lease: Copy or key details of the original lease agreement being extended

3. Schedule 3 - Rent Schedule: Detailed breakdown of rent payments and escalation during extension period

4. Schedule 4 - Condition Report: Current condition of the property at time of extension

5. Appendix A - Plans: Property plans and drawings if relevant

6. Appendix B - Special Conditions: Any special terms or conditions specific to the extension period

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Malaysia

Publisher

Genie AI

Document Type

Rental Agreement

Cost

Free to use

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