Victorian Consolidated Legislation

Property Law Act 1958 - SECT 150

Surrender of a lease without prejudice to under-leases with a view to the grant of a new lease

150. Surrender of a lease without prejudice to under-leases with a view to the
grant of a new lease



(1) A lease may be surrendered with a view to the acceptance of a new lease in
place thereof, without a surrender of any under-lease derived thereout.

(2) A new lease may be granted and accepted, in place of any lease so
surrendered, without any such surrender of an under-lease as aforesaid, and
the new lease shall operate as if all under-leases derived out of the
surrendered lease had been surrendered before the surrender of that lease was
effected.

(3) The lessee under the new lease and any person deriving title under him
shall be 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.

(4) Each under-lessee and any person deriving title under him shall be
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.

(5) The lessor granting the new lease and any person deriving title under him
shall be entitled to the same remedies, by distress32 or entry in and upon the
land comprised in any such under-lease for rent reserved by or for breach of
any covenant, agreement or condition 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-

   (a)  if the original lease had remained on foot; or

   (b)  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-

as the case may require.

(6) This section shall not affect the powers of the Court to give relief
against forfeiture.