jamie johnson is a sought-after personal finance writer with bylines on prestigious personal finance sites such as quicken loans, credit karma, and the balance. a lease extension is a legal agreement that extends the terms of an existing lease. understand how a lease extension works and how it compares to other options at the time a lease ends, so you can decide if a lease extension is right for you. when the term of a lease is about to expire, you have a few options for what to do next. if you’re happy with your current lease, you may opt for a lease extension. this means you extend the terms of the current lease agreement, although the additional time frame is typically shorter than the original time frame. if you’re happy with the apartment and your monthly rent, you may want to extend the rental agreement for a little while longer.