Ordered by type of interest
Lease
Types of leases:
- A fixed-term lease – a lease granted for a fixed period of time
o Usually in return for undertaking to pay the landlord a rent
and to fulfil certain other obligations
o Must be created expressly
- A periodic lease – a lease granted for a basic period of time
o Either expressed (contains terms i.e. ‘weekly lease, ‘weekly
tenant’, ‘monthly tenancy’ or ‘from year to year’) or implied
(Javad v Mohammed Aqil) by a regular payment of rent
o Renews itself automatically at the end of each period of the
tenancy
o Certain to continue until either party decides to end it by
serving a notice to quit
Essential characteristics
- Exclusive possession for a term at a rent (Lord Templeman in
Street v Mountford) – the ability for the tenant to exercise control
over the land
o The tenant may exclude all (including the landlord) from the
land
o Extends beyond mere exclusive occupation a tenant does
not need to be in occupation to enjoy exclusive possession nor
do they need to be the only tenant (Antoniades v Villiers)
However, if there are multiple occupants (a joint
tenancy or individual agreements) like in AG Securities v
Vaughan, the House of Lords decided that each occupier
had signed a simple agreement described as a licence
Ratio – no one party conferred a right of exclusive
possession only exclusive occupation
- Certainty of duration – ‘a term of years absolute’ (Section 205(1)
(xxvii) of the LPA 1925)
o the date of commencement of the lease must be known to
both parties at the start
o in the absence of a date specified in the lease, it will be
deemed to start immediately
o A lease granted for an uncertain period of time is not a term
certain and, therefore, not an estate in land (Lace v Chantler)
o Periodic tenancies – the ability of either party to end a period
tenancy by notice was essential (Prudential Assurance Co Ltd
v London Residuary Body)
o Tenancy for life – s 149(6) of the LPA 1925 operates to convert
a tenancy for life into a 90-year lease, determinable either on
, the death of the tenant, or as provided in the agreement itself
(Berrisford v Mexfield Housing Co-operative)
- Need for rent
o The Court of Appeal held in Ashburn Anstalt v Arnold that a
tenancy may still arise even where no rent was payable s
205(1)(xxvii) of the LPA 1925, which defines ‘terms of years
absolute’ as meaning ‘a term of years (… whether or not at a
rent)’
o Where rent is paid, this supports the view that the parties had
intended a formal relationship of landlord and tenant to arise,
rather than an informal/family relationship
- Legal lease
Capable of being Yes – exclusive possession for fixed term (s 1(1)
legal? (b) LPA 1925)
Formalities required Deed required (s 52(1) of the LPA 1925)
s 1 LP(MP)A 1989 outlines the current
requirements for a valid deed:
- Make it clear on the face of the document
that it is intended to be a deed
- Be signed, witnessed and delivered
Binding/enforceable Unregistered land:
Pre-1926 cannot be registered as land charges
and they will be enforceable against everyone,
except equity’s darling (LCA 1925)
The buyer may be able to negotiate with the
person who holds the benefit of the interest and
get them to release it by payment of money
Registered land:
A legal lease for a term of more than seven
years is a registrable disposition (s 27 LRA
2002)
- Once they have been completed by
registration, these interests will both
become legal and bind any purchaser of
the land
A legal lease not exceeding seven years is an
overriding interest (Sch 3, para 1 LRA 2002)
Effect of Registered land:
registration/non- Registrable disposition:
registration According to s 29 of the LRA 2002, a purchaser
for valuable consideration takes the legal estate
subject to entries appearing on the register. If
not registered, the interest does not operate at
law
, [however, if the necessary formalities for
creating an equitable interest are met, the
interest may exist as an equitable interest
instead]
- Parol Lease
Payment of monthly rent gives rise to implied periodic (monthly) tenancy
(Javad v Mohammed Aqil) implied parol lease doesn’t matter how
long the actual lease is
Capable of being Yes – fixed term of three years or less (s 54(2)
legal? LPA 1925)
Formalities required - Can be oral (s 52(2)(d) LPA 1925)
- Must take effect immediately in possession
(exclusive possession)
- Granted at the best rent which can be
reasonably obtained without a premium
Binding/enforceable Unregistered land:
Pre-1926 cannot be registered as land charges
and they will be enforceable against everyone,
except equity’s darling (LCA 1925)
The buyer may be able to negotiate with the
person who holds the benefit of the interest and
get them to release it by payment of money
Registered land:
A legal lease not exceeding seven years is an
overriding interest (Sch 3, para 1 LRA 2002)
Termination of leases
Fixed term
- Automatic occurs automatically without the need for either party
to serve notice on the other – ‘effluxion of time’
- Forfeiture may include a provision that allows the landlord to end
it prematurely if the tenant fails to meet their obligations [below in
leasehold covenants]
- Surrender where the tenant yields up the lease to the landlord
who accepts the surrender (can only be achieved if both the
landlord and the tenant agree to it)
o On surrender, the lease is said to merge in the landlord’s
reversion and is extinguished
- Merger occurs where the tenant acquires the immediate
reversion to the lease (opposite of surrender)
- Break clause may be a clause included in the express grant of the
lease providing for either party to serve a notice on the other to end
the lease prematurely
Periodic tenancies
, - A notice to quit
o The length of the notice required depends upon the periodic
term of the tenancy the general rule is that at least one full
period’s notice is required to terminate the tenancy
o Such notice should expire at the end of a clear period
- Exceptions: residential premises
o Where premises have been let as a dwelling, a notice served
by either a landlord or a tenant will not be valid unless it is
given in writing, contains certain prescribed
information and is given at least four weeks before it is
due to take effect (s 5 of the PEA 1977)
o S 3 of the PEA 1977 requires the landlord to obtain a court
order to recover possession of premises that have been let as
a dwelling and where the occupier continues to reside there,
or that are occupied as a dwelling under a license
Security of tenure
- Residential tenants
o Rent Act (RA) 1977 – applies to a tenancy granted before 15
Jan 1989
o Housing Act (HA) 1988 – applies to a tenancy on or after 15
Jan 1989
o A landlord wishing to remove the tenant will be able to do so
only on certain grounds set out in these acts A landlord will
find it easier to remove a tenant if the tenant falls within the
HA 1988 than if it is protected by the RA 1977
o There are tight controls over the rent that a landlord may
charge in the case of RA 1977 tenancies
- Business tenants
o Protected under Part II of the Landlord and Tenant Act (LTA)
1954 may only be terminated in accordance with the
provisions of the Act
o The tenant may also be able to claim a right to a new tenancy
or to compensation if they lose their tenancy
Lease Structure
1. Determine whether the right is a lease (rather than, say, a licence),
unless the question tells you that it is a lease, by considering and
applying to the facts the essential characteristics of a lease
a. Exclusive possession
b. Certainty of duration
c. Rent payment
d. If you decide it is merely a licence, this is not a proprietary
interest in the land and will not generally bind a purchaser –
see Part I
2. Decide what type of lease it is (This is important if, say, the landlord
wants to terminate the lease or if the freehold has been sold, where
the new freeholder wants to know if lease binds him)
a. Duration of lease: