Leases & Licenses
💡 Law of Property Act 1925, s1(1)
Only estates in land capable of subsisting or being conveyed or created at law are
(a) An estate in fee simple absolute in possession (Freehold - Land is completely owned an
owner's rights on land);
(b) A term of years absolute (Leasehold - Maximum set number of years that the tenant can
What is a lease?
"A contract for the exclusive possession and profit of land for some determ
Lord Templeman in Prudential Assurance v London Residuary Body [1992] 2
Generally creates an estate in land, proprietary - capable of binding third parties.
Status of tenant (Having benefit of leasehold estate in the Land) carries important rights and ob
statute.
Terminology
Term of years absolute - Maximum number of years that tenant can occupy it for.
Lease/Tenancy/Demise.
Parties to agreement:
Landlord/Tenant.
Lessor/Lessee.
Reversionary interest - Once lease expires, property automatically revers back to the granto
Assignor/Assignee - When original tenant (lessee) no longer wants to have interest in lease
(the person taking over the lease), with the original tenant now being known as the "assigno
Granting & Taking a Lease
Landlord's point of view:
Retains some ownership rights - Reversionary interest.
, Types of Leases:
Fixed term leases - Exact duration set out at beginning of lease.
E.g., a week, two years.
Tenancies at will - Landlord and tenant agree that tenant will be allowed to occupy property for
either part may end arrangement on demand.
Only suitable on temporary basis - Usually used when tenant and landlord negotiate terms
Javad v Aqil [1991] 1 W.L.R. 1007
Landlord (Aqil) - Let a shop premises to tenant - (Javad).
Negotiations initiated for long term lease - Took longer than expected.
Tenant moved in while negotiations were ongoing.
Negotiations broke down and landlord asked tenant to leave premises.
Tenant claimed to be an implied periodic tenant - Protection under Landlord and Tenan
Landlord claims that tenant was tenant at will.
HELD: Tenancy at will.
Periodic tenancy - Referring to specific period such as weekly, monthly, quarterly or yearly.
Also known as 'rolling contract' because it rolls from one period to the next.
💡 General rule - Any lease over three years has to be registered by deed.
Periodic tenancies do not require this, even if the length ends up far exceeding three ye
Statutory tenancy
Tenant has right to occupy premises until termination of lease.
Right cannot be transferred.
Secure tenancy - Housing Act 1985.
Public authority lettings - Council houses.
Landlord can only terminate tenancy by issuing legal proceedings and obtaining order f
Assured shorthold tenancy
Fixed term lease of property for at least six months.
Housing Act 1996 - All private residential lettings are AST (subject to some exceptions)
tenancy.
Periodic - Landlord cannot terminate before six months has passed.
Tenancies at sufferance - Tenant stays in the property after lease has ended, and without owne
accepts rent.
💡 Law of Property Act 1925, s1(1)
Only estates in land capable of subsisting or being conveyed or created at law are
(a) An estate in fee simple absolute in possession (Freehold - Land is completely owned an
owner's rights on land);
(b) A term of years absolute (Leasehold - Maximum set number of years that the tenant can
What is a lease?
"A contract for the exclusive possession and profit of land for some determ
Lord Templeman in Prudential Assurance v London Residuary Body [1992] 2
Generally creates an estate in land, proprietary - capable of binding third parties.
Status of tenant (Having benefit of leasehold estate in the Land) carries important rights and ob
statute.
Terminology
Term of years absolute - Maximum number of years that tenant can occupy it for.
Lease/Tenancy/Demise.
Parties to agreement:
Landlord/Tenant.
Lessor/Lessee.
Reversionary interest - Once lease expires, property automatically revers back to the granto
Assignor/Assignee - When original tenant (lessee) no longer wants to have interest in lease
(the person taking over the lease), with the original tenant now being known as the "assigno
Granting & Taking a Lease
Landlord's point of view:
Retains some ownership rights - Reversionary interest.
, Types of Leases:
Fixed term leases - Exact duration set out at beginning of lease.
E.g., a week, two years.
Tenancies at will - Landlord and tenant agree that tenant will be allowed to occupy property for
either part may end arrangement on demand.
Only suitable on temporary basis - Usually used when tenant and landlord negotiate terms
Javad v Aqil [1991] 1 W.L.R. 1007
Landlord (Aqil) - Let a shop premises to tenant - (Javad).
Negotiations initiated for long term lease - Took longer than expected.
Tenant moved in while negotiations were ongoing.
Negotiations broke down and landlord asked tenant to leave premises.
Tenant claimed to be an implied periodic tenant - Protection under Landlord and Tenan
Landlord claims that tenant was tenant at will.
HELD: Tenancy at will.
Periodic tenancy - Referring to specific period such as weekly, monthly, quarterly or yearly.
Also known as 'rolling contract' because it rolls from one period to the next.
💡 General rule - Any lease over three years has to be registered by deed.
Periodic tenancies do not require this, even if the length ends up far exceeding three ye
Statutory tenancy
Tenant has right to occupy premises until termination of lease.
Right cannot be transferred.
Secure tenancy - Housing Act 1985.
Public authority lettings - Council houses.
Landlord can only terminate tenancy by issuing legal proceedings and obtaining order f
Assured shorthold tenancy
Fixed term lease of property for at least six months.
Housing Act 1996 - All private residential lettings are AST (subject to some exceptions)
tenancy.
Periodic - Landlord cannot terminate before six months has passed.
Tenancies at sufferance - Tenant stays in the property after lease has ended, and without owne
accepts rent.
