LEASES – REVISION NOTES
Lease or Tenancy?
Shorter leases tend to be called tenancies, longer leases tend to be referred to as
leases, but for all practical purposes, the terms mean the same thing under Law of
Property Act:
Section 1(1) Law of Property Act 1925 - The only estates in land which are
capable of subsisting or of being conveyed or created at law are:
(i) An estate in fee simple absolute in possession (Freehold)
(ii) A term of years absolute (Leasehold)
Licence
Licence is a personal arrangement between licensor and licensee under which the
licensee may occupy the licensor’s property for a specific purpose. (For example
hotel – paying money in return for a room).
Difference Between Lease and Licence:
Lease - is an interest in land. It offers security of tenure for an agreed terms upon
agreed conditions and may give rise to statutory protection for the tenant.
Licence – Merely a personal permission to do something that would otherwise be a
trespass. It is less secure and will not give rise to statuary protection.
If you entered into Lease, you create a legal interest, whereas licence is more of a
personal.
Difference Between Persons
Landlord / Lessor – The person granting the lease, which is sometimes described
as “letting” the property.
Tenant / Lessee – The person to whom the lease is granted.
Types of Leases
Fixed-Term Lease – A lease that is entered into for a fixed period of time.
Periodic Tenancy – A lease or tenancy in which rent is payable at fixed intervals
and which continues indefinitely form one rent period to the next, until being
terminated by notice. (Month to month in the form of rent).
Tenancy At Will – A lease or tenancy, which usually arises by implication that can
be terminated by the landlord or tenant at any time.
Lease or Tenancy?
Shorter leases tend to be called tenancies, longer leases tend to be referred to as
leases, but for all practical purposes, the terms mean the same thing under Law of
Property Act:
Section 1(1) Law of Property Act 1925 - The only estates in land which are
capable of subsisting or of being conveyed or created at law are:
(i) An estate in fee simple absolute in possession (Freehold)
(ii) A term of years absolute (Leasehold)
Licence
Licence is a personal arrangement between licensor and licensee under which the
licensee may occupy the licensor’s property for a specific purpose. (For example
hotel – paying money in return for a room).
Difference Between Lease and Licence:
Lease - is an interest in land. It offers security of tenure for an agreed terms upon
agreed conditions and may give rise to statutory protection for the tenant.
Licence – Merely a personal permission to do something that would otherwise be a
trespass. It is less secure and will not give rise to statuary protection.
If you entered into Lease, you create a legal interest, whereas licence is more of a
personal.
Difference Between Persons
Landlord / Lessor – The person granting the lease, which is sometimes described
as “letting” the property.
Tenant / Lessee – The person to whom the lease is granted.
Types of Leases
Fixed-Term Lease – A lease that is entered into for a fixed period of time.
Periodic Tenancy – A lease or tenancy in which rent is payable at fixed intervals
and which continues indefinitely form one rent period to the next, until being
terminated by notice. (Month to month in the form of rent).
Tenancy At Will – A lease or tenancy, which usually arises by implication that can
be terminated by the landlord or tenant at any time.
