Lease variation

A variation changes part of the existing lease but does not replace it entirely. Variations can be agreed voluntarily between you and your landlord or ordered by a tribunal in certain circumstances.

You will need the help of a solicitor to vary your deed. Find out more about using a solicitor.

A lease may need to be varied if it:

• contains errors or outdated clauses
• is defective (for example, missing repairing obligations)
• needs to be changed to reflect physical alterations
• needs clarifications required by mortgage lenders
• contains terms you and your landlord want to update or remove

There are 2 ways to vary a lease:

1. voluntary variation
2. statutory variation through the tribunal

Voluntary variation

A voluntary variation happens when you and your landlord agree to change the lease terms.

It is suitable when:

• the change benefits both parties (you and your landlord)
• the lease needs minor updates
• both sides want to add or amend clauses by consent

The change is formalised by a Deed of Variation, which is drafted by solicitors.

The deed must be in writing, signed by both you and your landlord, and registered at the Land Registry if the lease is registered.

You normally pay your own legal fees and may have to pay the landlord’s reasonable legal costs.

Statutory variation through the tribunal

If you and your landlord cannot agree voluntarily, you may be able to apply to a tribunal – the First-tier Tribunal (Property Chamber) in England, or the Leasehold Valuation Tribunal in Wales. Find out more about applying to the tribunal.

The tribunal can vary a lease if it is defective, unclear, omits essential rights or obligations, creates unreasonable service charges, is inconsistent with other leases in the building, or no longer reflects the physical layout following redevelopment.

If the tribunal orders a change to your lease, it will also decide the exact wording. It may also require changes to other leases in the building to keep everything consistent.

Generally, substantial changes cannot be made during a statutory lease extension. The new lease must follow the terms of the existing one, with only limited updates. However, there is a section of the 1993 Act that allows the tribunal to correct a serious defect in the existing lease.

In the Rossman case (2015), the Upper Tribunal decided that where service charge percentages in a lease no longer added up correctly, this amounted to a serious defect that had to be corrected when the new lease was granted. The Tribunal also took into account the existence of a voluntary abatement scheme, which showed that the service charge provisions in the lease itself needed to be amended.

Substantial changes may include:

• altering service charge percentages
• changing major repairing responsibilities

If more significant changes are needed, a separate Deed of Variation or tribunal application may be needed.

Costs may include:

• your legal fees
• your landlord’s legal fees

Landlords often expect leaseholders to pay their reasonable legal fees for voluntary variations, and sometimes surveyors’ fees if valuation is needed. If you are performing a voluntary variation of your deed, check if your lease requires you to cover your landlord's legal fees. Such fees must be reasonable.

If you are varying your deed by application to the tribunal, the tribunal may decide on if you should pay the landlord's legal fees or not.

We strongly recommend that you use a solicitor who is experienced in varying leases.

A lease is a legal document that creates binding rights over land, and variations must be precise.

Mortgage lenders also typically require legal confirmation that the variation does not negatively affect the security of the loan.

Find out more about using a solicitor.

Leaseholders can come together and ask the landlord to agree voluntary variations or apply to the tribunal. The tribunal can order consistent changes across multiple leases if necessary.

Lease variations for houses follow similar principles.

If you need to vary a lease of a house, rather than extend it, you should get specialist advice. This will confirm the correct process, and which legislation applies to your situation.

Find out more about leasehold houses.