What does 'Deed of Variation' mean when buying a property?
Find out what Deed of Variation means when you are buying a property. 'What does Deed of Variation mean?' plus over 150 other property related terms and jargon in plain English
Deed of Variation
So on one of my properties it says in the lease that I am not allowed to hang my laundry to dry outside the property or within view of the windows. Its a garden flat for crying out loud but OK, I'm not allowed.
If I wanted to get this changed and the freeholder agreed then we could go through the expense of drawing up a whole new lease but that would be costly. It would be better to simply add something to the lease which says "that clause which says you can't hang your laundry outside no longer applies" and that appended document is a deed of variation that would now allow all my neighbours to admire my very colorful collection of boxer shorts.
Alright not a brilliant example. Lets try something else. Say you have a garden flat and you want to add a conservatory. A lease usually specifies that at the end of the lease you will hand the property back to the freeholder in the state it was at the beginning of the lease and that any changes need to have the agreement of the Freeholder.
So as a Leaseholder I ask the Freeholder if I can add my conservatory. Let's say they say yes then we need to make that official by appending the agreement to the lease. Again that additional document is known as a deed of variation. It creates a variation to the lease which just saves the costs of creating and signing off an entirely new lease.
So when small changes need to be made to the lease it is preferable for all parties to append this to the lease rather than write the entire lease again. The document that is appended to the lease is called a deed of variation but it must be agreed and signed by both the leaseholder and the freeholder (or his agent) before it can come into effect.
To find out more about deeds of variation and how you might use them during your property purchase pick up a copy of my ebook How to Really Buy a Property.