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When it comes to any commercial or retail lease in 2025, it’s more important than ever to ensure that your documents are legally correct and compliant with current legislation. Ensuring your lease is accurate not only protects you from future disputes but also helps safeguard your business interests. Why?
A Lease Agreement binds you to specific obligations over an extended period. For instance, your agreement will clearly outline essential details such as:
- Duration of the lease
- Payment terms (for example, when rent is due, including provisions for digital payments)
- Who can occupy the premises
- Rules around repairs and maintenance
- Restricted activities
So, if you plan on extending your lease, you’ll need to consider whether you’re prepared to commit to these obligations for a longer period – especially given the evolving market conditions in 2025. It may also be wise to have your documents reviewed by professionals via our Contract Review and Redraft service.
What Happens When A Lease Ends?
If your lease is coming to an end, you generally have two options:
- End the lease and return the property
- Extend or renew the lease
If you plan on keeping the property for your business a little longer, this is where an Extension of Lease comes into effect.
How Does An Extension Of Lease Work?
When you extend your lease, you’ll need to sign a separate Extension of Lease document. In 2025, many landlords offer digital options, allowing you to execute these agreements electronically. However, it’s crucial to negotiate the terms so that they reflect your business’s current needs and future plans.
With the growing shift to digital platforms, ensure that any e-signatures comply with the latest legal standards. Our article on why you should use e-signatures explains this in more detail, helping you streamline the lease extension process without compromising legal rigour.
Generally speaking, you should provide written notice to your landlord if you wish to extend your lease, and the required notice period should be explicitly stated in your original agreement. Always double-check these requirements, as they can vary from one lease to another.
You might also want to negotiate your right to renew the lease in the future. If you have a clear vision of the timeframe you need—or are considering a long-term arrangement—it’s important to communicate your expectations to your landlord and adjust your Extension of Lease accordingly.
Renewing Vs Extending A Lease
You might be wondering, “What is the difference between renewing and extending a lease?”
While the terms may sound similar, the key difference lies in the nature of the agreement. Renewing a lease essentially starts a new lease agreement, whereas extending a lease continues the existing one—with updated terms if required. In both cases, you typically need to sign a new document to formalise the changes.
Why Do I Need A Lawyer To Review My Extension Of Lease?
As mentioned earlier, extending a lease involves signing a separate document that clearly outlines your ongoing obligations. It’s easy to overlook complex clauses that could potentially impact your business down the line.
A lawyer can help you negotiate and fine-tune the terms of your Extension of Lease, ensuring that you’re only bound by commitments that align with your business plan. For example, you might want to adjust payment terms or the lease duration to better fit your operational requirements. See our Contract Review and Redraft service for expert assistance.
Speaking with a lawyer is your best first step to identifying and mitigating any potential risks. It also ensures that your extension complies with the latest 2025 legislative updates in commercial tenancy laws.
For more personalised advice, explore our Online Lawyer service, where our experts can help tailor your lease extension to your business requirements.
Where Do I Start?
If your lease is nearing its expiry and you’re considering an extension, it’s highly advisable to consult a lawyer to guide you through the process. This ensures that your documents are tailored to your business’s unique needs and that you’re only committing to terms you can comfortably fulfil.
Our team at Sprintlaw is well-versed in the latest 2025 lease requirements, and we can assist you in negotiating favourable terms and navigating any complexities. For further insights, check out our comprehensive Contract Review guide, which helps you identify potential risks and opportunities within your lease agreement.
If you would like a consultation on your options going forward, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
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