Lease re-gears—what, when and how?

Copyright © 2025 LexisNexis

Published by a LexisNexis Property expert

Practice notes

Lease re-gears—what, when and how?

Copyright © 2025 LexisNexis

Published by a LexisNexis Property expert

Practice notes

This Practice Note explains what is meant by a ‘lease re-gear’. It looks at key triggers for lease re-gears and the commercial drivers (for both landlords and tenants). It also gives examples of common lease terms that are renegotiated on a lease re-gear and how a lease re-gear may be structured.

What is a lease re-gear?

A ‘lease re-gear’ is a commercial term referring to the renegotiation of lease terms during the term of a lease. The terms ‘lease variation’ and ‘lease re-gear’ are often used interchangeably, but lease re-gears do not always involve a formal lease variation. A formal lease variation is only one mechanism that might be used to bring about a lease re-gear, but other transactions are often necessary to give effect to the new commercial agreement.

Depending on the new terms agreed between the landlord and the tenant, a re-gear can involve:

•
a deed of variation
•
a surrender and re-grant (eg surrender of the existing lease by deed or operation of law and the grant of a new lease on the revised terms)

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Jurisdiction(s):

United Kingdom

Key definition:

Deed of variation definition

What does Deed of variation mean?

A deed varying the terms of another document (eg a lease or sale contract)

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