Leasehold and shared ownership
Lease deed of variation
Changing the terms of a lease by agreement, for example to fix defective repair or insurance clauses that a lender will not accept.
This work depends on the details, so our team prepares a quote for you, usually within one working day.
Most variations need three things: the landlord's agreement, your lender's consent and registration at HM Land Registry. Start early if a sale or remortgage depends on it.
A lease can only be changed if the landlord and the leaseholder agree in writing, usually in a deed of variation. People often need one when a buyer's lender spots a problem, such as a lease that does not say who insures the building, a ground rent that doubles every few years, a plan that does not match the flat, or service charge shares that do not add up to 100%.
This service covers varying a residential lease, whether to fix a defect, remove an onerous clause or bring an outdated lease up to date. It is not the same as a deed of variation of a will, which changes how someone's estate is shared after their death.
Rather than a fixed price, you get a tailored quote prepared by our team, usually within one working day, once we know what needs changing and who has to agree to it.
What is involved
A deed of variation usually involves these steps:
- Identifying the problem: your conveyancer reviews the lease, often alongside a buyer's or lender's report, and pins down exactly which clauses need changing.
- Approaching the landlord: they explain the proposed changes to the landlord or its solicitors. The landlord does not have to agree, may want its legal costs paid and may ask for a premium for some changes, such as reducing the ground rent.
- Negotiating the wording: the deed is drafted and agreed, making sure it fixes the problem without creating new ones.
- Lender consent: if there is a mortgage on the lease, and sometimes on the freehold, the lender must consent to the change.
- Other leaseholders: where the change affects how costs are shared across the building, such as service charge percentages, other flat owners may need to be involved.
- Signing: the landlord, the leaseholder and sometimes the lender sign the deed.
- Registration: the variation is registered at HM Land Registry against the lease and, where needed, the freehold title.
If the landlord will not agree and the lease fails to make satisfactory provision for matters such as repair, insurance or service charges, a leaseholder may be able to apply to the First-tier Tribunal (the Leasehold Valuation Tribunal in Wales) to have it varied.
What the legal fee covers
- Reviewing the lease and identifying the clauses to change
- Explaining the options, including whether a tribunal application is possible
- Drafting or reviewing the deed of variation
- Negotiating the wording with the landlord or its solicitors
- Obtaining your mortgage lender's consent
- Arranging signing by all the parties
- Registering the variation at HM Land Registry
Costs you may see on top
- The landlord's legal costs, which landlords commonly ask the leaseholder to pay
- Any premium the landlord asks for, for example to reduce the ground rent
- Your lender's fees for considering and consenting to the change
- HM Land Registry fees for registering the variation
- Tribunal fees and representation if an application is needed
- Valuation advice where a premium is being negotiated
- Stamp Duty Land Tax in some cases where a premium is paid, which your conveyancer will check
What to have ready
- A copy of the lease and any earlier variations
- Any report from a buyer's or lender's conveyancer explaining the problem
- Contact details for the landlord, its solicitors or the managing agent
- Your mortgage lender's details and account number
- Details of any sale or remortgage that depends on the variation, with dates
- Photo identification and proof of address
How long it takes
A straightforward variation agreed with a cooperative landlord often takes a few weeks, most of it spent agreeing the wording and obtaining lender consent. Some landlords are slow to respond, or ask for a premium that needs negotiating, which can stretch the process to a few months. If the variation is needed for a sale or remortgage, raise it as soon as the problem is spotted, because the buyer or lender will usually not proceed until the deed is agreed. A tribunal application takes considerably longer.
Things to watch for
- The landlord does not have to agree to a variation, and it may ask you to pay its legal costs or a premium. Ask for an estimate of its costs before work starts.
- Changes that affect other flats, such as service charge percentages, can need other leaseholders to agree and are harder to achieve.
- Your lender must consent. Without it, the variation can breach your mortgage conditions and the lender may not accept the new terms.
- If the real problem is a short lease or a high ground rent, a formal lease extension may solve it more completely than a variation. Ask your conveyancer to compare the options.
- Do not confuse this with a deed of variation of a will, which is a separate process for redirecting an inheritance.
Questions people ask
Why does my buyer's lender want the lease changed?
Lenders publish requirements for the leases they will accept. Common problems include missing or unclear repair and insurance obligations, ground rent that rises sharply, service charge shares that do not add up and plans that do not match the property. If the lease falls short, the lender may refuse to lend until it is fixed, which is why a deed of variation is often arranged in the middle of a sale.
What if the landlord refuses?
Under section 35 of the Landlord and Tenant Act 1987, a party to a long lease of a flat can apply to the First-tier Tribunal (the Leasehold Valuation Tribunal in Wales) to vary the lease if it fails to make satisfactory provision for matters such as repair, insurance, services, the recovery of costs or the calculation of the service charge. It does not cover every problem and it takes time, so your conveyancer will check whether it applies. You can read section 35 itself.
Can a deed of variation reduce my ground rent?
Yes, if the landlord agrees, but it will usually expect to be paid for giving up income. For a flat, a formal lease extension under the statute adds 90 years and reduces the ground rent to a peppercorn, which may be better value. Your conveyancer and a valuer can compare the cost of a variation with an extension.
Does the variation need registering?
Usually yes. Where the lease is registered at HM Land Registry, the deed of variation is registered against the leasehold title and often the freehold title too, so anyone checking the register later can see the change. Buyers and lenders generally want to see the variation registered, or at least completed and sent for registration, before they rely on it.
Who does the work
Your matter is handled by a law firm regulated by the Solicitors Regulation Authority, the Council for Licensed Conveyancers or CILEx Regulation, or in Northern Ireland by a solicitor regulated by the Law Society of Northern Ireland. At the moment the law firms on our panel act for property in England and Wales, so for property in Northern Ireland we tell you whether a firm can act for you before we pass your details to anyone. The firm confirms who will work on your file, their experience and its terms before you instruct it. How we choose our firms.