(1) Where the lessor and the lessee agree that lease shall be surrendered it shall be surrendered in the following manner—
(a) an instrument shall be prepared in the prescribed form, or else the word “surrendered” shall be inscribed on the lease or on the duplicate or triplicate thereof;
(b) the instrument or inscription shall then be executed by the lessor and lessee;
(c) the Registrar shall then cancel the registration of the lease; and
(d) the instrument or inscribed lease shall then be filed,
and thereupon, or upon such earlier date as is expressed in the instrument or inscription, the interest of the lessee shall cease.
(2) A lease which is subject to a hypothec or a sublease shall not be surrendered without the consent in writing of the proprietor of the hypothec or sublease.