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A freeholder (‘the Landlord’) granted a ten year headlease to a tenant.
After a year, the tenant, with the Landlord’s consent, granted a sublease for a term of five years to a subtenant.
Two years later, the tenant surrendered its headlease to the Landlord.
Which of the following statements best describes the position of the subtenant?
A. The subtenant’s sublease is extinguished.
B. The subtenant becomes the immediate tenant of the Landlord on the terms of the headlease.
C. The subtenant becomes the immediate tenant of the Landlord on the terms of the sublease.
D. The subtenant becomes the immediate tenant of the Landlord on the terms of an overriding lease.
E. The subtenant’s sublease is forfeited.
C - The subtenant becomes the immediate tenant of the Landlord on the terms of the sublease.
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