LEASES-CHAPTER 6-NOTES
LEASES NOTES-VI
INTRODUCTION:
Leasehold is one of the only two estates in land that have been
identified in s.1 of Law of Property Act’1925 (LPA’25). It is
capable of existing as a legal or as equitable interest. What falls
short of being legal is likely to be treated as equitable interest.
Main distinguishing factor between the both primarily happens
to be how it was created. Term of years; tenancy; leasehold;
sublease and leasehold estate are all used to denote the system of
lease.
In this system there is a landlord and a tenant relationship. And,
landlord should have a greater interest in the land, on which
lease is being created, than the tenant.
It is defined as: LEASE OR TERM OF YEARS ABSOLUTE
IS EXCLUSIVE POSSESION OF LAND FOR A CERTAIN
PERIOD OF TIME.
PERMISSION TO OCCUPY:
In essence, leases as well as licenses are permissions to occupy.
However, their nature and the protections guaranteed to the
occupier are different and it is important in propositions to
distinguish between a lease and a license. LEASE is an estate in
land which has statutory protection accorded to it. Whereas,
license is a personal right based on contract or permission.
Landlords try to make their arrangements with the tenant to
appear as a license. However, court does not accept this as they
1
, LEASES-CHAPTER 6-NOTES
look into what it actually is and not what it appears to be.
However, it must be shown how the arrangement is not a
license and this is pretty much what a basic proposition
about leases concerns itself with.
ESTABLISHING A LEASE:
There are 3 characteristics/elements of lease which, if present,
show the existence of a lease which were laid out in the
landmark case of Street.v.Mountford by Lord Templeman:
1. EXCLUSIVE POSSESSION;
2. FIXED/CERTAIN TERM and;
3. RENT.
1. EXCLUSIVE POSSESSION:
Most critical element of lease and the main
distinguishing feature between a lease and license.
It is basically the tenant’s right to exclude others from
land defined as the entitlement of tenant to keep out
the world.
An occupier without exclusive possession is a
licensee.
The court will look for true bargain between the
parties and ignore sham devices, inserted by landlord,
to make a lease look like a license.
Need to bring into account the terms of arrangement,
facts and circumstances in order to do a close analysis
of the situation.
Antonidades.v.Villers: This case involved a couple
(romantically involved) who rented a small flat and
the landlord inserted a clause allowing him to spend a
night with the couple (which could not have been
2
LEASES NOTES-VI
INTRODUCTION:
Leasehold is one of the only two estates in land that have been
identified in s.1 of Law of Property Act’1925 (LPA’25). It is
capable of existing as a legal or as equitable interest. What falls
short of being legal is likely to be treated as equitable interest.
Main distinguishing factor between the both primarily happens
to be how it was created. Term of years; tenancy; leasehold;
sublease and leasehold estate are all used to denote the system of
lease.
In this system there is a landlord and a tenant relationship. And,
landlord should have a greater interest in the land, on which
lease is being created, than the tenant.
It is defined as: LEASE OR TERM OF YEARS ABSOLUTE
IS EXCLUSIVE POSSESION OF LAND FOR A CERTAIN
PERIOD OF TIME.
PERMISSION TO OCCUPY:
In essence, leases as well as licenses are permissions to occupy.
However, their nature and the protections guaranteed to the
occupier are different and it is important in propositions to
distinguish between a lease and a license. LEASE is an estate in
land which has statutory protection accorded to it. Whereas,
license is a personal right based on contract or permission.
Landlords try to make their arrangements with the tenant to
appear as a license. However, court does not accept this as they
1
, LEASES-CHAPTER 6-NOTES
look into what it actually is and not what it appears to be.
However, it must be shown how the arrangement is not a
license and this is pretty much what a basic proposition
about leases concerns itself with.
ESTABLISHING A LEASE:
There are 3 characteristics/elements of lease which, if present,
show the existence of a lease which were laid out in the
landmark case of Street.v.Mountford by Lord Templeman:
1. EXCLUSIVE POSSESSION;
2. FIXED/CERTAIN TERM and;
3. RENT.
1. EXCLUSIVE POSSESSION:
Most critical element of lease and the main
distinguishing feature between a lease and license.
It is basically the tenant’s right to exclude others from
land defined as the entitlement of tenant to keep out
the world.
An occupier without exclusive possession is a
licensee.
The court will look for true bargain between the
parties and ignore sham devices, inserted by landlord,
to make a lease look like a license.
Need to bring into account the terms of arrangement,
facts and circumstances in order to do a close analysis
of the situation.
Antonidades.v.Villers: This case involved a couple
(romantically involved) who rented a small flat and
the landlord inserted a clause allowing him to spend a
night with the couple (which could not have been
2
