Q&As

If a lease, which is subject to a registered charge, is varied by way of Deed of Variation without the consent of the lender, will the lender be bound by the terms of the variation if it enforces its security?

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Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on LexisPSL on 13/08/2019

The following Property Q&A Produced in partnership with Chris Bryden of 4 King’s Bench Walk provides comprehensive and up to date legal information covering:

  • If a lease, which is subject to a registered charge, is varied by way of Deed of Variation without the consent of the lender, will the lender be bound by the terms of the variation if it enforces its security?

A deed of variation is an agreement between the lessor and the lessee to alter the terms of the lease. There are myriad reasons why a deed of variation might need to be entered into, which might include altering covenants, changing rent or service charge provisions, or inserting a break clause into a lease. A purported deed of variation which extends either the term of the lease or the extent of the demise operates at law as a surrender and re-grant of the lease (see Practice Note: Lease variations—surrender and re-grant issues).

A lease operates as a contract between landlord and tenant. As a result they are able to vary the terms of the agre

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