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When you rent out premises to carry out business activities, you usually enter into a Lease Agreement with the landlord. This agreement sets the foundation for your business operations and outlines your key obligations and rights.
Your Lease Agreement will cover things like the duration of the lease, the fees you need to pay, who can occupy the premises, and any restricted activities. It’s vital that these terms keep pace with current legal and market conditions in 2025.
If your arrangement is going well, chances are you’ll want to continue your lease for longer than the original term stipulates. This is where you’d look at extending your lease to maintain business continuity while potentially renegotiating some terms.
In this article, we’ll cover the following:
- What is an Extension Of Lease?
- Are there other ways I can terminate my lease?
- Is extending the same as renewing my lease?
- Can I get someone to Review My Extension Of Lease?
How Do I Terminate My Existing Lease?
Leases can come to an end for a number of reasons, both favourable and unfavourable. When this happens, you have several options to terminate your existing lease:
- Agree to end the lease with your landlord and return the property
- Renew the lease on a new contract
- Extend the lease, while keeping the existing structure
Usually, your Lease Agreement will specify the expiry date. If both you and your landlord are happy to end the lease on that date, you can do so without any complications.
Sometimes, the parties may choose to end their lease sooner than expected – in which case you may need to draft a Lease Surrender Agreement to formalise the early termination.
However, if you want to continue using your business premises, you can either renew or extend your lease. It’s important to note that these are not the same – we’ll explore the key differences later in this article.
So, what happens if you want to extend your lease?
I Want To Extend My Lease – What Do I Need To Do?
If you want to extend your lease, this typically means continuing your existing lease for an additional period. You may also have the opportunity to negotiate new or revised terms as part of the extension.
Before you sign an Extension Of Lease, you must provide your landlord with written notice in accordance with the timeframe set out in your original Lease Agreement. This step is crucial to ensure both parties are aligned on the extension process.
If you decide to negotiate revised terms during your extension, it’s worth discussing your right to renew and clearly outlining how this future option will work. Doing so can help you avoid complications and ambiguity down the track. For further guidance on negotiating lease terms, you might also want to check our Commercial Leases page.
Extending Vs Renewing My Lease
When you want to continue using your business premises, you can either extend or renew your lease – and these are distinct processes. Extending your lease means continuing the current agreement for a longer period, often with negotiated adjustments to certain terms. In contrast, renewing your lease involves entering into a completely new agreement with potentially different terms, even if the business relationship remains unchanged.
Both options require signing a new document, but the approach you choose can have significant legal and financial implications. It’s important to review your current Lease Agreement carefully and consult with a professional to decide which option best suits your needs in 2025.
What Does An Extension Of Lease Include?
When you extend your lease, you’ll need to draft and sign an Extension Of Lease. Our lawyers can help tailor the extension document to meet your business’s specific requirements, ensuring the agreement reflects current legal standards for 2025.
Regardless of your situation, a standard Extension Of Lease should include the following key terms:
- The duration of the extension
- Termination rights
- Defects management
- Outgoings
- Fit-out works
- Limits on how the premises can be used
- Sub-letting rights
- Rights and responsibilities of the landlord and tenant
In 2025, with evolving market conditions and regulatory updates, it’s vital that these terms are not only comprehensive but also compliant with the latest standards. If you’re unsure about any of these terms or the role they play in your lease arrangement, feel free to chat with one of our experienced lawyers. You might also find our guide on deed of assignment useful for understanding how modifications can be integrated seamlessly.
Where Can I Get An Extension Of Lease?
If you’re looking to extend your lease, our lawyers are here to help. At Sprintlaw, we offer an Extension Of Lease package, which includes:
- An Extension Of Lease, tailored to your business’s requirements
- Phone consultations with a Sprintlaw lawyer who will advise you on key legal matters, and identify any issues in your existing lease if you choose to extend it
- One complimentary amendment to the final draft we provide you
Our team remains up-to-date with the latest industry trends and regulatory changes, ensuring that any extension meets current 2025 legal requirements. For more information on our services, visit our Commercial Leases section.
Need Help?
When it comes to terminating, extending, or renewing your lease, getting professional legal advice is always a worthwhile investment. A lawyer can help identify any issues that might lead to future complications, saving you time and potential headaches later on.
If this sounds like your situation, we also offer an Extension Of Lease Review package, where a Sprintlaw lawyer will review your existing Extension Of Lease to ensure it aligns with your objectives and current legal standards.
For a consultation on your options for Commercial Leases or any other legal matters relating to your business premises, contact us on 1800 730 617 or email team@sprintlaw.com.au for a free, no-obligations chat. Our experienced team is here to help you navigate the complexities of commercial leasing in 2025 with ease.
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