If you were signing a new lease agreement or renewal, then the landlord could add new terms at that time. If you did not want to agree to the new terms you could refuse to sign and try to negotiate. But, if the landlord does not relent, then there will be no new lease and your old lease will expire. Parties are free to amend, modify, or make new contracts.
However, to make sure the landlord had the ability to do this at this time, you should go see a real estate attorney to review your circumstances, your current lease, and the proposed lease.
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The lease agreement generally controls, but I find it hard to believe that the lease agreement was for 7 years. Moreover, it seems that the early termination fee is quite significant under these circumstances. I recommend you take the agreement to a local lawyer and find out if you have a case of refusing to pay the lease. Good luck.
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