Leases 1
Types of Tenancies;
Fixed Term Tenancy
- Many tenancies will take the form of a fixed term tenancy – a tenancy for a defined period of time.
E.g. 1 week, 1 month, 99 years, 999 years
- There MUST be a defined period of time – otherwise, it will be held VOID. - REQUIREMENT
Lace v Chantler [1944]
- A lease ‘for the duration of the war’ was void because it could not have been known at that time exactly how
long the war would last.
What if you have a lease for one year – but you can renew indefinitely? Valid or Void?
- VALID
These are known as ‘periodic’ tenancies
You can continue renewing the lease for an indefinite period of time, however, the first period of time is certain.
We don’t know the total amount of time for which you will be renting, but we know that it will be for at least the time
specified by the first period – e.g. a year.
Lord Templeman in Prudential Assurance Co Ltd. v London Residuary Body [1992]
- “A tenancy from year to year is safe from being uncertain because each party has power by notice to determine
at the end of any year.
- The term continues until determined as if both parties made a new agreement at the end of each year for a new
term for the ensuing year.
What if the start date of the lease is in the future? Valid or Void?
- Possibly Valid but also possibly Void
Also, known as ; ‘Reversionary’ Leases
It is possible to create a lease which will start in the future HOWEVER, there are some limitations to this.
Section 149 (3) LPA 1925:
A term, at a rent or granted in consideration of a fine, limited after the commencement of this Act to take effect more
than twenty-one years from the date of the instrument purporting to create it, shall be void…
If you entered a reversionary lease this year, it would have to commence before 2042, otherwise, it will be considered
VOID.
Types of Tenancies;
Fixed Term Tenancy
- Many tenancies will take the form of a fixed term tenancy – a tenancy for a defined period of time.
E.g. 1 week, 1 month, 99 years, 999 years
- There MUST be a defined period of time – otherwise, it will be held VOID. - REQUIREMENT
Lace v Chantler [1944]
- A lease ‘for the duration of the war’ was void because it could not have been known at that time exactly how
long the war would last.
What if you have a lease for one year – but you can renew indefinitely? Valid or Void?
- VALID
These are known as ‘periodic’ tenancies
You can continue renewing the lease for an indefinite period of time, however, the first period of time is certain.
We don’t know the total amount of time for which you will be renting, but we know that it will be for at least the time
specified by the first period – e.g. a year.
Lord Templeman in Prudential Assurance Co Ltd. v London Residuary Body [1992]
- “A tenancy from year to year is safe from being uncertain because each party has power by notice to determine
at the end of any year.
- The term continues until determined as if both parties made a new agreement at the end of each year for a new
term for the ensuing year.
What if the start date of the lease is in the future? Valid or Void?
- Possibly Valid but also possibly Void
Also, known as ; ‘Reversionary’ Leases
It is possible to create a lease which will start in the future HOWEVER, there are some limitations to this.
Section 149 (3) LPA 1925:
A term, at a rent or granted in consideration of a fine, limited after the commencement of this Act to take effect more
than twenty-one years from the date of the instrument purporting to create it, shall be void…
If you entered a reversionary lease this year, it would have to commence before 2042, otherwise, it will be considered
VOID.
