4): Landlord and Tenant Flashcards
What is a lease?
A lease is an interest in land granting exclusive possession for a fixed period of time.
If exclusive possession is absent, the agreement is a licence (a personal right to occupy).
A licence is not an interest in land and can be revoked at any time.
What makes a lease a legal lease?
Must comply with s.1(1)(b), LPA 1925.
For leases >3 years: must be created by deed (s.52(1), LPA 1925).
For leases ≤3 years: no deed required if conditions of s.54(2), LPA 1925 are met.
A lease of >7 years must be registered at HM Land Registry.
A lease of ≤7 years takes effect as an overriding interest — no registration needed.
What is an equitable lease?
Arises if formalities of legal lease not satisfied but:
There is a valid contract to grant/transfer a legal estate.
The contract is for value, in writing, and complies with s.2, LP(MP)A 1989.
What is the relationship between landlord and tenant under a lease?
Lease contains express or implied covenants.
Typical tenant covenants:
Pay rent/insurance.
Repair property.
Allow quiet enjoyment.
Not assign or sub-let the property (alienation clause).
What are the 3 essential characteristics of a lease (vs licence)?
Certainty of Term:
Clear start and end dates.
Must be a fixed and max duration.
Exclusive Possession:
Tenant can exclude others, including landlord.
Courts look at substance over form — beware of sham agreements.
Rent:
Indicative but not essential.
How do leases differ from licences?
Lease:
Proprietary right.
Binds third parties.
Can be assigned.
Statutory protections may apply.
Licence:
Personal right.
Does not bind third parties.
Cannot be assigned.
No statutory protection.
What is the doctrine of privity of contract and estate (pre-1996)?
Applies to leases granted before 1 Jan 1996.
- Privity of Contract:
Original tenant remains liable for lease terms even if lease is assigned.
Landlord can enforce covenants unless released.
- Privity of Estate:
Exists when parties have direct relationship and tenant remains liable for covenants.
Only applies if the covenant “touches and concerns” the land.
What changed after 1 Jan 1996 under the Landlord and Tenant (Covenants) Act 1995?
Privity of contract and estate replaced with statutory rules.
On assignment of lease:
All covenants pass to the assignee.
Assigning tenant is automatically released from liability.
Landlord’s release is not automatic:
Must follow criteria in ss.6 and 8 of the 1995 Act.
What is Alienation of a Lease?
Disposal of a leasehold estate by the tenant
May occur through:
Assignment – lease transferred to new tenant (no new lease created)
Sub-lease – new shorter lease carved out of the original
Mortgage/Charge – lease used as security for loan
Parting with Possession – tenant gives up exclusive possession
What is an Authorised Guarantee Agreement (AGA)?
Required when post-1995 lease restricts assignment
Landlord may ask assignor (current tenant) to guarantee:
Performance of lease by the new tenant (assignee)
Guarantee ends when assignee no longer holds the lease
What is an Absolute Covenant Against Alienation?
Complete restriction on alienation
Any assignment without landlord’s permission = breach
May lead to forfeiture
No regulatory provisions apply
What is a Qualified Covenant Against Alienation?
Alienation allowed with landlord’s consent
Landlord must not unreasonably withhold consent (s.19, Landlord and Tenant Act 1927)
Under Landlord and Tenant Act 1988, if written request made:
Landlord must give written response within a reasonable time
Must give conditions or reasons for refusal
What are the Landlord’s Remedies for Non-Payment of Rent?
sue for rent
commercial rent arrears recovery (CRAR)
Forfeiture
How can a landlord sue for rent?
can sue:
Against current or former tenant (privity of contract)
Can rely on Authorised Guarantee Agreement
What can a landlord do under a commercial rent arrears recovery (CRAR)?
Enter property and seize goods
Sell goods to recover rent arrears
What does forfeiture allow the Landlord to do?
Right to re-enter and terminate lease
Must be an express clause in lease
Peaceable re-entry or via court order
What are the Tenant’s Remedies if Sued by Landlord (Recovery Between Tenants)?
Recover from Assignee:
If breach was theirs and tenant has discharged liability
Recover monies owed using using Indemnity Covenant:
Found in the deed of assignment
Rely on Implied Indemnity (s.77, LPA 1925):
Applies to leases granted before 1 Jan 1996
What are the different ways in which a lease can be terminated?
Lease ends when the fixed term expires
No action needed by either party
What is Notice to Quit?
Applies to periodic tenancies
Terminated by notice served by landlord or tenant
What is Surrender?
Tenant voluntarily yields lease
Landlord accepts surrender
Can be express or implied
What is a Break Clause?
Gives option to terminate lease mid-term
Must comply with conditions stated in the lease
What is Disclaimer?
Arises on bankruptcy/liquidation of tenant
Trustee/liquidator can disclaim lease
What is Frustration in lease law?
Lease ends if performance becomes impossible
No fault of either party
Rare in lease situations
What is Repudiatory Breach?
Serious breach that goes to the root of the lease
Allows the innocent party to terminate the lease
What is Merger?
Tenant acquires freehold of the property
Lease merges into the reversionary estate
Lease ceases to exist
What is Forfeiture for Non-Payment of Rent?
Used if tenant fails to pay rent
Landlord must:
-Make formal demand
-Attend premises between sunrise and sunset
-Tenant must be in possession
Brings lease to an end
What is Forfeiture for Breach of Covenant (other than rent)?
Applies if tenant breaches other lease terms
Landlord must:
-Serve notice specifying the breach
-Require remedy within reasonable time
-May require compensation
Can only be used if tenant is in possession
Brings lease to an end
