36   Further leases of lots and common property

(1)  Except as provided by subsection (3) and section 122 of the Conveyancing Act 1919, the lessor under a leasehold strata scheme may grant further leases of the lots the subject of the scheme (which may consist of or include leases to the lessor) at any time before the scheme is terminated.

(2)  If a lease is granted under subsection (1) so as to commence when the lease of the common property expires, the lessor under the scheme shall also grant a further lease of the common property to the body corporate.

(3)  Where the lessees of lots the sum of whose unit entitlements is not less than four-fifths of the aggregate unit entitlement and the body corporate have, at least 6 months before the expiration of the terms of those leases, given written notice in accordance with subsection (4) to the lessor under the leasehold strata scheme concerned of their intention to exercise their rights to renew their leases, the lessor shall, at least 3 months before those terms expire, grant and deliver:

(a)  further leases of those lots to those lessees, and

(b)  a further lease of the common property to the body corporate.

(4)  A lessee of a lot or a body corporate gives notice in accordance with this subsection to the lessor under the leasehold strata scheme concerned of an intention to exercise a right to renew a lease only if:

(a)  the right to a further lease, being a lease containing specified provisions, has been granted to the lessee or body corporate by the lessor in writing signed by the lessor, and

(b)  the notice is accompanied by a lease for execution by the lessor in the form approved for registration under the Real Property Act 1900 and containing those provisions.

(5)  Except where any such lease is granted so as to commence during the term of another lease of a lot or the common property and is expressed to expire at the same time as the other lease, the terms of all leases granted under this section with respect to a parcel shall be expressed:

(a)  to commence at the expiration of the terms of the leases they are intended to replace, and

(b)  to expire at the same time.

(6)  If a lease granted under this section confers on the lessee a right of renewal, the renewal term shall be the same as that to which each other lessee under the leasehold strata scheme is entitled.

(7)  The lessor under the scheme may execute a further lease of the common property as agent for the body corporate, unless the lease is granted pursuant to subsection (3).

(8)  Notwithstanding subsection (3), the lessor under the scheme may refuse to grant:

(a)  a further lease of a lot to a lessee, if:

(i)  the lessee has committed a breach of a provision of the lease of that lot and that breach has not been remedied, or

(ii)  the lessee has not complied with a requirement imposed by the lessor in accordance with a provision of the lease for the renovation of improvements comprised within that lot, or

(b)  a further lease of the common property to the body corporate, if:

(i)  the body corporate has committed a breach of a provision of the lease of the common property and that breach has not been remedied, or

(ii)  the body corporate has not complied with a provision of the lease for the renovation of any improvements comprising common property.

(9)  If a lessor refuses under subsection (8) (b) to grant a further lease of the common property the subject of a leasehold strata scheme, the lessor shall also refuse to grant further leases of lots the subject of the same scheme.

(10)  A right to a further lease of a lot or of common property may not be exercised otherwise than in accordance with this section.