301. Lease granted pursuant to statutory right of enfranchisement.

301.     Lease granted pursuant to statutory right of enfranchisement.

A tenant may be entitled to be granted a new lease1 despite the fact that the grant of the existing lease was subsequent to the creation of a mortgage on the landlord's interest and not authorised as against the persons interested in the mortgage2. A lease so granted is deemed to be authorised as against the persons interested in any mortgage on the landlord's interest, however created or arising, and is binding on those persons3. However, such a lease is not binding on the persons