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As the last date to exercise the option is 30 June 2009 (being, in this case, 6 months prior to the expiry date), the landlord would have to have given the notice at any time between the dates of 30 June 2008 and 31 December 2008, effectively giving the tenant at least 6 months (but no more than 12 months) to consider whether to exercise the option. Note, if the tenant exercised the option on 30 September 2008, and the landlord had not yet given the notice, the landlord is not required to give the notice.
If the landlord fails to give the notice in the time specified by section 28(1), the date after which the option is no longer exercisable is given a statutory extension of 6 months after the landlord eventually gives the notice to the tenant. Where the extended date is after the expiry date in the lease, the lease continues until that date on the same terms and conditions as applied immediately before the expiry date.
However, if the tenant does not wish for the lease to be extended beyond the expiry date, the tenant can give the landlord a written notice terminating the lease (providing the lease is not terminated any earlier than the date of expiry specified in the lease). See section 28(2) and (3).
Irrespective of the statutory extension, once the option is eventually exercised, the new term will commence the day after the expiry date of the previous lease (see section 28(4)). |
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