New Zealand Legislation: Acts

30 Renewal or expiry of lease and purchase of reversionary interest

• (1) Where under the lease a right of renewal of the lease or an option to purchase the reversionary estate in the land is given to the lessee, the following provisions shall apply:

  • (a) in the case of a right of renewal or extension of the lease, the consent of any number of persons who are together entitled to exercise not less than two-thirds of the votes on an ordinary resolution shall be sufficient to approve the terms of the renewal or extension of the lease:

  • (b) in the case of an option to purchase the reversionary estate in the land, the consent of the proprietors of all the units shall be required to the terms of the purchase.

  (2) Where on the expiry of the lease the lessee is entitled under the lease to an amount equal to the value of any buildings, fixtures, and other improvements on the land or to any part thereof, then, notwithstanding the provisions of section 23, the persons who were the proprietors of the units immediately before the expiry shall be entitled to receive that amount in shares proportionate to the unit entitlement of their respective units:

  provided that, if the Court considers that it is inequitable to apportion that amount among those persons in those shares it may apportion that amount among them in shares proportionate to the relative values of the units.