Lease Renewals (Commercial Tenancy)

1497777 Ontario Inc. v. Leon's Furniture Ltd, 2003 CanLII 50106 (ON CA)

[50] Finally, with respect to what may be considered to be the legal framework relating to this issue, I note that it has been held that an option to renew a lease, when exercised, results in a fresh demise relating to a new term: see Avlor Investments Ltd. v. J.K. Children's Wear Inc. (1991), 1991 CanLII 7124 (ON SC), 6 O.R. (3d) 225, 85 D.L.R. (4th) 239 (Gen. Div.), at p. 231 O.R. "Where a lease contains an option to renew the lease the exercise of the option will ordinarily involve the creation of a new lease, . . .": [page220] Halsbury's Laws of England, 4th ed (London: Butterworths, 1981), vol. 27(1), para. 467, at p. 435. This supports the view that "the term" in the consent was the initial 30-year term in the lease and that the renewal terms would be new terms.