Extension Of Lease

An extension of lease refers to the process of prolonging the duration of a lease agreement between a tenant and a landlord.

What is an extension of lease?

An extension of lease refers to the process of prolonging the duration of a lease agreement between a tenant and a landlord. This means that the tenant will continue to occupy and use the leased property for a specified additional period beyond the original lease term.

What’s the difference between a lease extension and lease renewal? 

A lease extension occurs when both the tenant and landlord agree to prolong the existing lease beyond its original expiration date. This process involves amending the terms of the current lease to extend the duration of occupancy. It's like adding extra time onto the end of the existing lease agreement, allowing the tenant to continue living or operating in the property without the need for a completely new contract. 

On the other hand, a lease renewal involves creating an entirely new lease agreement after the current one has ended. This typically happens when the original lease term has expired, and both parties wish to continue the tenancy. In a lease renewal, the terms of the old lease may be renegotiated, and adjustments can be made to reflect any changes in circumstances or market conditions. 

Does extending your lease mean you’ll have to pay more rent? 

Not necessarily. The rent for an extension of a lease may or may not be higher, and it depends on various factors. If there's a provision in the original lease agreement or if the market conditions have changed, the rent might increase. 

However, sometimes the rent remains the same if both parties agree to such terms during the negotiation for the lease extension.

Talk to a local agent about market performance

Is now a good time to sell? Talk to a top agent about market performance in your area.

You might also be interested in