SDLTM14120 | Term of a lease: Extending the term of a lease

The term of a lease may in practice be extended by:

a) the grant of a reversionary lease (that is one where the term commences after the grant date) or

b) an express surrender and regrant or

c) a deed of variation extending the term (which takes effect in law as an implied surrender and regrant – refer to SDLTM17080)

For reversionary leases (a) refer to SDLTM17070.

Under (b) or (c) above, SDLT is payable on the net present value of the regranted lease, with the rent element relating to the overlap period reduced by the rent already taken into account for SDLT purposes. Note SDLTM11070 regarding chargeable consideration for surrender and regrant.