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Leases
The Basics
Since 1925, only two legal estates in land exist:
Freehold estate (estate in fee simple absolute in possession)
Endures for an uncertain length of time
Leasehold estate (term of years absolute).
Fixed duration
A lease:
Is a contract between parties
Creates an estate in land
Can bind third parties
Lease terms may include:
Property description
Lease duration
Rent payment
Repair responsibilities
Insurance responsibilities
Subletting permissions
A lease may be created for a number of reasons, for example so that the freehold owner
may:
obtain income;
retain an interest in the property that can be sold; and/ or,
enforce positive covenants against a successor in title to the original tenant.
Leases 1
, Terminology
Lease Types
Lease: Fixed-term letting (e.g., 3 years, 99 years)
Tenancy: Short-term letting (e.g., weekly, monthly)
Term of years: Legal term for lease (LPA 1925)
Demise: Older term for lease
Parties Involved
Lessor/Landlord: Original grantor of the lease
Lessee/Tenant: Original grantee of the lease
Reversioner: Landlord who retains freehold interest
Types of Interests
Freehold estate: Endures for uncertain time
Leasehold estate: Fixed duration
Freehold reversion: Landlord's retained interest
Leasehold reversion: Tenant's retained interest when subletting
Subletting
Head lease: Original lease
Sublease/Underlease: Lease granted by original tenant
Head landlord: Original lessor
Sublessor/Sublandlord: Original tenant granting sublease
Sublessee/Subtenant: Tenant of a sublease
Sublease must be at least one day shorter than the head lease
NB: 'Lessor' and 'lessee' typically refer to original parties, while 'landlord' and 'tenant' are
used for successors in title.
graph TD
A["Freeholder (Landlord)"] --> B["Lessee (Tenant)"]
Leases 2
Leases
The Basics
Since 1925, only two legal estates in land exist:
Freehold estate (estate in fee simple absolute in possession)
Endures for an uncertain length of time
Leasehold estate (term of years absolute).
Fixed duration
A lease:
Is a contract between parties
Creates an estate in land
Can bind third parties
Lease terms may include:
Property description
Lease duration
Rent payment
Repair responsibilities
Insurance responsibilities
Subletting permissions
A lease may be created for a number of reasons, for example so that the freehold owner
may:
obtain income;
retain an interest in the property that can be sold; and/ or,
enforce positive covenants against a successor in title to the original tenant.
Leases 1
, Terminology
Lease Types
Lease: Fixed-term letting (e.g., 3 years, 99 years)
Tenancy: Short-term letting (e.g., weekly, monthly)
Term of years: Legal term for lease (LPA 1925)
Demise: Older term for lease
Parties Involved
Lessor/Landlord: Original grantor of the lease
Lessee/Tenant: Original grantee of the lease
Reversioner: Landlord who retains freehold interest
Types of Interests
Freehold estate: Endures for uncertain time
Leasehold estate: Fixed duration
Freehold reversion: Landlord's retained interest
Leasehold reversion: Tenant's retained interest when subletting
Subletting
Head lease: Original lease
Sublease/Underlease: Lease granted by original tenant
Head landlord: Original lessor
Sublessor/Sublandlord: Original tenant granting sublease
Sublessee/Subtenant: Tenant of a sublease
Sublease must be at least one day shorter than the head lease
NB: 'Lessor' and 'lessee' typically refer to original parties, while 'landlord' and 'tenant' are
used for successors in title.
graph TD
A["Freeholder (Landlord)"] --> B["Lessee (Tenant)"]
Leases 2
