An interest that is the relevant interest stays the relevant
interest if a subordinate interest is granted out of it or by the
person entitled to it acquiring the interest that is reversionary
on it. Where that happens the interest into which the leasehold
interest is merged becomes the relevant interest.
Example Cole owns the freehold of a factory, which
he leases to Clayton. Clayton then subleases the factory to Knowles
who builds an extension. The relevant interest for the factory
extension is Knowles's sublease of the factory from Clayton. If
Knowles:
