The lease extension is made after a lease contract has been signed between the lessor and lessee. The signed lease contract already represents the following of certain terms of usage of the property. The extension is requested by the user to increase the period of leasing with certain renewed terms and conditions. The leaser then draws a lease extension for the user to renew the lease contract. This document must elaborate the necessary criteria that should be followed for the extended use of property.
The legal requirements of the lease extension are the same as the lease contract with a few additions and modifications made accordingly. There is no room for negotiations here as only the owner has the right to grant the user an extension. The user is obligated to follow the renewed terms and conditions in order to gain the extension. The document must be put together with great care and professionalism and emphasize on certain essential points.
- The name of the owner, user and the property leased need to be stated. This will also include certain details of the property.
- The expiry of the previous lease contract must be mentioned, after which this document was required to be created.
- The time period that has been extended for the usage of the property must be mentioned here. This is as per the owner’s convenience.
- The new legal clauses for usage should also be mentioned. There will be actions taken if the property is damaged by the user.
- In case the user fails to leave or return the property after the extended period is over, the owner will take certain legal steps against the user.
- The legal extension will be used as a future record for reference purposes and hence, should be created carefully.