Property Law Act 1969

A lease not being a lease registered under the Transfer of Land Act 1893, may be surrendered with a view to the acceptance of a new lease in place thereof, without a surrender of any under‑lease derived out of the lease so surrendered.

A new lease may be granted and accepted, in place of a lease so surrendered, without a surrender of an under‑lease as provided in subsection (1), and the new lease operates as if all under‑leases derived out of the surrendered lease had been surrendered before the surrender of that lease was affected.

The lessee under the new lease and any person deriving title under him is entitled to the same rights and remedies in respect of the rent reserved by and the covenants, agreements and conditions contained in any under‑lease as if the original lease had not been surrendered but was or remained vested in him.

Each under‑lessee and any person deriving title under him is entitled to hold and enjoy the land comprised in his under‑lease (subject to the payment of any rent reserved by and to the observance of the covenants, agreements and conditions contained in the under‑lease) as if the lease out of which the under‑lease was derived had not been surrendered.

The lessor granting the new lease and any person deriving title under him is entitled to the same remedies by entry in and upon the land comprised in any such under‑lease for rent reserved by or for breach of any covenant, agreement or conditions contained in the new lease (so far only as the rents reserved by or the covenants, agreements or conditions contained in the new lease do not exceed or impose greater burdens than those reserved by or contained in the original lease out of which the under‑lease is derived) as he would have had —

if the original lease had remained on foot; or

if a new under‑lease derived out of the new lease had been granted to the under‑lessee or a person deriving title under him,

This section does not affect the powers of the Court to give relief against forfeiture.