Div 2Initial term of lease

Division 2—Initial term of lease 20B—Minimum 5 year term (1) The term for which a retail shop lease is entered into must be at least five years. The term of a retail shop lease is worked out under this section on the assumption that any right or option of renewal or extension under the lease or a collateral agreement will in fact be exercised. However, a right or option of renewal or extension will not be taken into account if it is given after the lease is entered into. (2) A lease is not invalidated by contravention of this section but the term of the lease is extended to bring the term (or aggregate term) to five years. If a lease is entered into for a term of three years, its term is extended by two years to five years. If a lease is entered into for a term of two years with an option for a further one year after that initial two years, the term of the lease is extended to four years (with the option for a further one year after that initial four years). (3) This section does not apply to a lease if— (a) the lease is a short-term lease (ie a lease entered into for a fixed term of 6 months or less); or (b) the lease arises when the lessee holds over after the termination of an earlier lease; or (c) the lease contains a certified exclusionary clause; or (d) the lessee has been in possession of the retail shop premises for at least 5 years; or (e) in the case of a retail shop lease that is a sublease—the term of the retail shop lease is as long as the term of the head lease allows; or (f) the lease is of a class excluded by regulation from the ambit of this Division.