The Commercial Lease Extension Letter is a crucial document in South African commercial property relations, used when parties wish to extend their existing lease arrangement without creating an entirely new lease agreement. This document type is particularly relevant when the original lease is approaching its termination date and both parties agree to continue their landlord-tenant relationship. It must comply with South African property law requirements, including the Formalities in Respect of Leases of Land Act and relevant commercial property legislation. The letter typically includes references to the original lease, specifies the extension period, outlines any modifications to existing terms, and confirms which original conditions remain in force. It's designed to provide a streamlined process for lease continuation while ensuring legal enforceability and protection for all parties involved.
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1. Letter Header: Full business details of both landlord and tenant, including registered addresses and reference numbers
2. Date: Current date of the extension letter
3. Reference Line: Reference to original lease agreement including its date and property details
4. Salutation: Formal greeting to the appropriate party representative
5. Purpose Statement: Clear statement of the letter's purpose to extend the existing lease
6. Extension Terms: Specific details of the extension period and any modified terms
7. Confirmation of Other Terms: Statement confirming all other original lease terms remain unchanged
8. Acceptance Procedure: Instructions for indicating acceptance of the extension
9. Closing: Professional closing including signature blocks for both parties
1. Rental Adjustment: Include when the extension involves changes to the rental amount
2. Maintenance Updates: Include when there are changes to maintenance responsibilities
3. Security Deposit Modification: Include when changes to the security deposit are required
4. Improvement Allowances: Include when offering tenant improvement allowances for the extended term
5. Break Clause: Include when either party wants the option to terminate during the extension period
1. Schedule A - Updated Rental Schedule: Detailed breakdown of new rental amounts and payment dates if changed
2. Schedule B - Property Condition Update: Current condition report of the property if required
3. Schedule C - Modified Terms: Detailed list of any terms that differ from the original lease
4. Appendix 1 - Original Lease Agreement: Copy of the original lease agreement for reference
5. Appendix 2 - Property Plans: Updated floor plans or property layouts if any changes to the leased area
Relevant legal definitions
Clauses
Relevant Industries
Retail
Office Space
Industrial
Warehousing
Healthcare
Hospitality
Professional Services
Manufacturing
Technology
Education
Financial Services
Food and Beverage
Logistics
Entertainment
Relevant Teams
Legal
Real Estate
Facilities Management
Operations
Finance
Administration
Property Management
Asset Management
Risk Management
Procurement
Corporate Services
Relevant Roles
Property Manager
Facilities Manager
Real Estate Manager
Commercial Director
Operations Manager
Legal Counsel
Chief Financial Officer
Business Owner
Leasing Manager
Asset Manager
Commercial Property Agent
Company Secretary
Managing Director
Tenant Representative
Property Administrator
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