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32 Cards in this Set
- Front
- Back
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Definitions
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Lease= Tenancy= Interchangeable
Landlord/ Lessor= Interchangeable Tenant/ Lessee= Interchangeable Demise (Lease) |
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Leases are Contracts
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Requirements= ALL apply for lease creation
- Offer -Acceptance -Consideration -Intention -Form -Capacity |
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Term of Years Absolute
Lease must contain CHARACTERISTICS |
1)Must be a Landlord and Tenant
2)Must be identifiable land 3)Landlord must retain a reversion 4)Tenant must have exclusive possession 5)Term must be for definite period |
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Definitions
(A lease is an estate of fixed maximum duration) - Unlike Estate in Fee Simple which is indefinite |
Freehold Fee Simple- Indefinite
->Freeholder grants lease to tenant for X years -->Tenant grants underlease -Licence- Interested in Land -Licensee- No exclusive right to posession |
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LandLord
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Can be:
-Freeholder -Tenant can also be a landlord I.E. If tenant granted 25 yr lease of property, tenant can create a 24 yr sub-lease of the same property |
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Definite Period
One that is definite or capable of being definite. |
-->A lease for 3 yrs commencing 1st Jan 2012
-->A tenancy of a house at a rent £1000 pm payed monthly -->Lease 'for the duration of the war'- Lace V Chantler -Lease could be for 1 day or 999 days...Provided it is for a lesser term than the freehold interest |
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Exclusive Possession
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- Fundamental to the creation of a tenancy
-Tenant has to be in a position where he can lawfully exclude others from the premises including landlord -Tenant should (for a period of term) seem to be the freeholder |
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Rent needed in a lease?
No... S 205 LPA 1925 Lease: "a term of years whether or not at a rent" |
Lease is an interest in land:
-With exclusive right to possession -For a term which is certain or readily calculable -At a rent |
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Lease 3 Essentials
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1) Exclusive right to possession
2) For a term which is certain/ readily calculable 3 )At a rent |
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Licence
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Licensee has no estate or interest in land
-->Licensee simply has permission to be on land -Difference between Licensee and trespasser--> (Permission) |
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Street V Mountford
As against joint occupiers |
Creation of licences still possible:
-Personal/ Gratuitous -Temporary -Personal Generosity -Business Freeholders Genuine need to share posession |
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Street V Mountford
What will negative the grant of a tenancy? |
-No intention to create any legal relationship
-Where there is some relationship other than Landlord and Tenant: EG -->Employer/ Employee situation -->Non-exclusive possession arrangement -Where landlord has no power to grant tenancy-->Arises if the person proposing the tenancy would be acting ultra vires |
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Licence or Tenancy?
2 Steps |
1) Has there been a grant of exclusive possession- Negative (cannot be a tenancy)
2) If there is exclusive possession, can there be does the arrangement fall into 1 of 3 exceptions--> If it does- there is no tenancy |
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Licenses Examples
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-Lodger- Contractual licence
-Hotel/ B & B guest- contractual licence -Below stairs staff- Contractual licence -Family members/ family guests where nobody intended to create legal relationships- bare licence |
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Modern Law
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Since January 1989...
No longer possible to create (Rent Act 1977) protected tenancies and thus no need for fictional licence. -Housing Act 1988 -Housing Act 1996 |
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Creation of Leases (3 Stages)
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1) Agreement for a lease (a contract)
2) Lease 3) Registration of the interest |
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Creation of Contracts for a lease
S2 LPA 1989 Contract for a lease must be: |
-In writing
-Be in 1 document or if exchanged- on each copy -Contain all terms of the contract/ incorporate by cross reference -Be signed by or on behalf of parties |
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Creation of Leases
S52 LPA 1925 |
- All conveyances of land are void for the purposes of creating a legal estate unless made by deed
...Therefore all leases (but not contracts/ agreements for leases) must be made by deed except... |
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Except
S54 LPA 1925- No need for deed if a lease: |
- Takes effect in possession
-For a term not exceeding 3 yrs (whether or not lessee is given power to extend the term) -At best rent which can reasonably obtained without taking a fine |
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Creation of leases EG Jill
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- Lease to Jill will take effect as a tenancy at will
-Assuming Jill goes into posession and pays rent monthly- she will be deemed to have implied yearly periodic tenancy -Periodic Tenancies (term by which rent payable) |
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Further Creation of Leases
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- May have multiple leases:
1) Head Lease 2) All are legal estates 3) Registerable --> Can have different title numbers for single property If lease created by Bill in writing but failed to create valid legal 4yr lease- because not created by deed... |
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S2 Agreement
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-If agreement complied with S2 and Jill enters into possession and pays rent.. then she has a valid implied legal periodic tenancy.
-May also have a equitable 4yr fixed term agreement- based on S2 agreement |
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Walsh V Lonsdale
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- Rule: Equity will prevail--> Effect- Jill can seek specific performance of her equitable lease if...
Bill tries to get possession before the end of the term |
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Equitable Lease
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Needs to be:
1) Registered as a class C land charge if unreg. or... 2) Noted as a minor interest if registered If not registered or noted- purchaser not bound However.. registered land- If Jill is in occupation at time of the sale to the purchaser- as she has an overriding interest. --> Specific performance is discretionary remedy |
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Concept of Privity
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- As well as been governed by contract- also governed by land law
- Privity of contract as between original parties -Privity of estate as between landlord and tenant generally |
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Change of Purpose
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--> If a book shop owner wants to change his trade to a mechanic after 5 years on a 20 yr lease of a shop...
He can 1) Find a sub-tenant 2) Find an assignee 3) Surrender the lease- to the landlord |
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Sub-tenancies and Assignments
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Sub-tenancy--> Tenant remains the tenant of the head landlord
Sub-tenancy features: 1) Term must be for a lesser period than the head-lease --> So if head-lease might end on 31st Dec, the sub-lease might end on 30th Sept |
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Voluntary Registration
S3 Land Registration Act 2002 - All substantial leasehold interests need to be reg - Title to the leasehold interest will only pass on reg |
If:
-There is an unreg superior title & -The lease has more than 7 years to run --> Then a tenant can register the interest |
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Compulsory Registration 1
Prior to 13/10/2003... |
When LRA 2002 and LRR 2003 came into effect..
--> Only leases for 21 years or more were reg. If: -Lease is created out of reg freehold/ superior leasehold title for a term exceeding 7yrs to run... -->Lease becomes compulsorily registerable |
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Compulsory Registration 2
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By 2002 Act
-A lease for 21 yrs or less which hasn't taken effect in possession after 3 months from grant- -must be registered |
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Compulsory Registration 3
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Failure to register, registerable lease will mean:
1) Lease is void at law and cannot transfer a legal estate But.. If it complies with S2 LPA 1989- there may be a Tenancy At Will/ Implied Periodic Tenancy |
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Compulsory Registration 4
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- Must apply for registration of leasehold title within 2 months
-Lease for less than 7yrs operates as an overriding interest -->Effect of LRR 2005- relates to prescribed clauses leases |
