78.—(1) Where a lease or other contract of tenancy (in this section referred to as the terminated lease or contract) is terminated before its normal expiration—

(a) a lease or other contract of tenancy or any premises comprised in the terminated lease or contract shall not, if it is a lease or contract, to which any Part of this Act applies, inferior to the terminated lease or contract, be terminated by the termination;

(b) the person who would, but for this subsection, become entitled by virtue of the termination of the terminated lease or contract to the possession of the premises shall become entitled to the reversion on the inferior lease or contract;

(c) that person shall, subject to subsection (2), become entitled to the benefit of the rent reserved by and the covenants contained in the inferior lease or contract and shall be regarded for the purposes of this Act as having become the immediate lessor of the premises.

(2) The person holding premises under an inferior lease or other contract of tenancy to which subsection (1) (a) applies shall, from the date of the termination of the terminated lease or contract, hold the premises at whichever of the following rents is the greater—

(a) the rent reserved by the inferior lease or contract,

(b) such portion of the rent reserved by the terminated lease or contract as is fairly attributable to the premises.