Land Law - Leases
Terminology:
Tenancy: normally applied to short-term lettings, e.g. on a weekly or monthly basis.
Lease: tends to be used when referring to a fixed-term letting. The person
to which a lease is granted is the leasee, the person granting it is the lessor.
- Another term sometimes used is demise
Freehold reversion: when the person holding a freehold interest (i.e. the landlord)
creates a leasehold estate out of the freehold estate, i.e. by granting a lease.
- A (the freeholder) grants a lease to B
-
- A has assigned the freehold reversion to D, must be done by deed (a
conveyance if unregistered, a transfer if the title is registered). D becomes the
head landlord/head lessor. B has assigned their head leasehold interest (a
leasehold reversion) to E. E replaces B as the sublandlord and is D’s tenant and
C’s landlord.
, [STEP 1] Is there a lease or a licence?
Is there a lease or a licence?
A lease is an interest in land and can potentially bind [INSERT PURCHASER]. A licence
is not an interest in land and will not bind [INSERT PURCHASER].
The requirements for a lease are:
- 1) Certainty of duration (Lace v Chantler);
- 2) Exclusive possession (Street v Mountford); and
- 3) Rent - although tenancy may still arise where no rent is payable (Ashburn
Anstalt v Arnold).
Certainty of duration
The parties must know from the outset the start and end date of the lease (Lace v
Chantler).
[APPLY ABOVE USING WHICHEVER IS RELEVANT FROM BELOW]
Fixed term
A fixed term lease must be for a fixed period of time.
- A tenancy for life will be converted into a 90-year lease in order not to violate the
rule of certainty of duration (s.149(6) LPA 1925, as applied in Berrisford v
Mexfield Housing Co-operative).
Termination:
Termination can be…[INSERT METHODS RELEVANT ON THE FACTS]
- automatic at the end of the lease period.
- By forfeiture, where the lease contains a provision that allows the landlord to end
it prematurely if the tenant fails to meet their obligations.
- By a break clause included in the express grant of the lease allowing either party
to serve a notice on the other to end the lease prematurely.
Periodic lease
Terminology:
Tenancy: normally applied to short-term lettings, e.g. on a weekly or monthly basis.
Lease: tends to be used when referring to a fixed-term letting. The person
to which a lease is granted is the leasee, the person granting it is the lessor.
- Another term sometimes used is demise
Freehold reversion: when the person holding a freehold interest (i.e. the landlord)
creates a leasehold estate out of the freehold estate, i.e. by granting a lease.
- A (the freeholder) grants a lease to B
-
- A has assigned the freehold reversion to D, must be done by deed (a
conveyance if unregistered, a transfer if the title is registered). D becomes the
head landlord/head lessor. B has assigned their head leasehold interest (a
leasehold reversion) to E. E replaces B as the sublandlord and is D’s tenant and
C’s landlord.
, [STEP 1] Is there a lease or a licence?
Is there a lease or a licence?
A lease is an interest in land and can potentially bind [INSERT PURCHASER]. A licence
is not an interest in land and will not bind [INSERT PURCHASER].
The requirements for a lease are:
- 1) Certainty of duration (Lace v Chantler);
- 2) Exclusive possession (Street v Mountford); and
- 3) Rent - although tenancy may still arise where no rent is payable (Ashburn
Anstalt v Arnold).
Certainty of duration
The parties must know from the outset the start and end date of the lease (Lace v
Chantler).
[APPLY ABOVE USING WHICHEVER IS RELEVANT FROM BELOW]
Fixed term
A fixed term lease must be for a fixed period of time.
- A tenancy for life will be converted into a 90-year lease in order not to violate the
rule of certainty of duration (s.149(6) LPA 1925, as applied in Berrisford v
Mexfield Housing Co-operative).
Termination:
Termination can be…[INSERT METHODS RELEVANT ON THE FACTS]
- automatic at the end of the lease period.
- By forfeiture, where the lease contains a provision that allows the landlord to end
it prematurely if the tenant fails to meet their obligations.
- By a break clause included in the express grant of the lease allowing either party
to serve a notice on the other to end the lease prematurely.
Periodic lease
