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SQE1 - Land Law 🌴 > 6. Leases > Flashcards

6. Leases Flashcards

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1
Q

What two types of leases are registrable?

A
  1. Lease granted for greater than seven years
  2. Lease assigned with greater than seven years remaining
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2
Q

An oral tenancy is valid if for less than how long?

A

Three years

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3
Q

In a long term lease, what is required for the rent to be adjusted?

A

The lease must provide for it

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4
Q

What is a reversionary lease?

A

A lease under which the tenant does not take possession until some time in the future

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5
Q

If there is no notice provision in a periodic tenancy, how much notice must be given to terminate it?

A

An amount of time equivalent to one period in the tenancy

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6
Q

In an implied periodic tenancy, how is the period determined?

A

Based on the how the rent is calculated, not how it is payable.

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7
Q

What arises and what does not arise if an owner of land allows a buyer to take possession of land before a written agreement is entered into?

A

A tenancy at will (not a legal interest) may arise, but no estate in land is created

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8
Q

In the case where such a tenancy at will arises, what is the effect of the prospective buyer in possession beginning to pay rent?

A

The court will treat it as a periodic tenancy unless there is very clear evidence that the parties intend the tenancy at will to continue

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9
Q

In what two situations is a lease void for uncertainty?

A
  1. A term is uncertain
  2. Starting/ending date (if fixed) is uncertain/not knowable
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10
Q

When can a lease be formed orally?

A

Term is for 3 years or more

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11
Q

When is a deed not needed to create a legal lease?

A

Short-lease for 3 years or less can be created in writing or orally if:
1) Tenant takes exclusive possession of the premises;
2) At the best rent which can reasonable be obtained

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12
Q

What is required to form an equitable lease?

A

Lease for more than 3 years
* valid contract if s.2 LP(MP)A is complied with.

Lease for 3 years of less
* May be oral and requires no written documents.

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13
Q

How is an equitable lease protected?

A

Registered
* entry of s.32 notice on Charges Register
* actual occupation

Unregistered
* Class C(iv) lease

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14
Q

What is required to assign a short-term lease?

A

Deed - all assignments must be conducted by deed.

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15
Q

What formalities are required to create an equitable lease?

A

Estate contract to create a lease (in writing, contains all terms, signed by both parties).

  • commonly arise where lease longer than 7 years is not registered.
  • unlike leases of 7 years or less, will never exist as an overriding interest.
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16
Q

What is the consequence if an equitable lease is not registered?

A

A bona fide purchaser of the landlord’s interest for value will not be bound

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17
Q

How is the situation different if the tenant of the equitable lease has begun to pay rent?

A

As discussed, the court will likely imply a periodic tenancy, and because this is a legal interest it will bind a purchaser of unregistered land and will be an interest that overrides first registration and a registered disposition

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18
Q

What is a licence and what does it not create?

A

A personal right to use land in some way, and creates neither an estate nor an interest in land.

  • cannot sue a third party for nuisance or trespass, no security of tenure.
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19
Q

What are the three characteristics of a lease?

A
  1. Exclusive possession
  2. Fixed or periodic time certain
  3. Correct formalities to create the lease
  • rent is not essential.
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20
Q

What is the most common landlord covenant ?

A

Covenant for quiet enjoyment
* landlord will not interfere in any way with the tenant’s enjoyment of the property nor allow the lawful activities of other tenants to do so

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21
Q

What is forfeiture with regard to a lease?

A

The right of the landlord to re-enter the premises and bring the lease to an end due to default by the tenant.
* differen mechanism whether breach is for non-payment of rent.

22
Q

What is the significance of the costs being recoverable as a debt?

A

They are recovered in a more straightforward debt action, rather than a damages action

23
Q

What are the remedies for breach of the covenant to pay rent?

A
  1. Commercial Rent Arrears Recovery
  2. Forfeiture
24
Q

What is the position under a lease made before 1996?

A

The original landlord and original tenant remain liable to one another, even after assignment, unless expressly released.

  • same goes for original gurantor.
25
Q

What is the position under a lease made post-1996?

A

Tenants are automatically released from their covenants upon assignment

26
Q

What is an authorised guarantee agreement?

A

An agreement, usually required by a landlord as a condition of assignment, whereby the original tenant will act as guarantor for his immediate successor in title, meaning only the last party to give an AGA is liable

27
Q

Is a sublease affected by the assignment of a head lease?

A

No

28
Q

What are the two ways the parties can mutually agree to bring a tenancy to an end?

A
  1. Surrender: Parties agree tenant will give up possession to the landlord
  2. Merger: Parties agree landlord will transfer reversion to the tenant
29
Q

If a head lease is ended by expiry, notice to quit, or forfeiture, does any sublease existing under it come to an end?

A

Yes

30
Q

What happens to a sublease if the headlease and the landlord’s reversion merge?

A

The new owner of the estate (usually the headlease tenant) will hold the estate subject to the sublease, and the subtenant’s position will be the same as with surrender

31
Q

What is the effect of an assignment by a tenant made in breach of the landlord’s consent requirement?

A

The assignment is legally effective, but there is a breach of covenant on the part of the original tenant as with the landlord

32
Q

What is the required form of the assignment of a lease?

A

By deed, even if the lease is made orally

33
Q

Where a tenant requests written consent for an assignment from a landlord, the landlord must do one of what two things and within what timeframe?

A

Within a reasonable time, the landlord must:

  1. Give consent, or
  2. Give written reasons for refusal
34
Q

Are the covenants in the head lease usually enforceable against a subtenant, and why?

A

No, because there is no privity of contract or estate between the landlord and the subtenant

35
Q

What occurs when a tenant tries to create a sublease which is longer than his own lease?

A

No new lease is created, but the tenant’s full lease will be assigned instead.

36
Q

What is the first determining factor in whether covenants of a lease bind the original parties after assignment?

A

Whether the lease is granted before 1 January 1996

37
Q

What is required for forfeiture to be an option to a landlord, no matter the reason?

A

It must be expressly provided in the lease. It can never be implied.

38
Q

What formalities are required to form a valid lease of three years or more?

A

Must be made by deed if it is to take effect as a legal lease, and if less than 7 years, notice can be placed on the Land Registry.
- If 7 years or more, needs to be registered.

39
Q

What are the three requirements for a short lease?

A
  • Not be in writing.
  • Take effect in possession for a term not exceeding three years.
  • Be at the best rent that can reasonably be obtained without taking a fine (premium).
40
Q

What purpose does a s.17 notice serve, and who is it served by?

A

tenant default notice, served by landlord on former tenant (either bound by old lease or AGA).
* former tenants remain liable for fixed charge (rent arrears, service charge, insurance premiums).
* Six months from charge becoming due to serve notice.

applies if landlord wants to recover a fixed charge!

41
Q

What are the three ways in which original tenants of old leases are protected by statute?

A
  • liability for variations made by subsequent assignees to the lease only binding them if forseeable/anticipated.
  • right to request an overriding lease if called on to cover for assignee’s breach (i.e. pay rent arrears).
  • only liable for fixed charged accrued over past 6 months (rent arrars, service, insurance premiums).
42
Q

What is an overriding lease, and when might one arise?

A

arises once a s.17 notice has been served on a former tenant, entitling them to request an overriding lease.
* Effect of becoming the immediate landlord of the defaulting party.
* Length is equal to lease’s remaining term plus three days.
* Landlord is obliged to grant it if requested, within reasonable time.

43
Q

When must a lease be executed by deed?

A

If its term is of three years or more, must be executed via deed.

If the term is more than seven years, lease must also be registered

44
Q

How are post-1996 leases different from a landlord’s point of view?

A

Not automatically released from liability when they transfer their interest.
* Need to apply for release following statutory procedure (s.6-8 of LTA 1996)

(cf. pre-1996 - privity of contract means that covenants are always enforceable, will need to obtain an express indemnity when transferring their interest).

45
Q

What is the procedure for an original landlord of a post-1996 lease to release itself of any ongoing liability towards a tenant where it sells its freehold interest?

A

Serve notice on tenant requesting to be released.
* where the tenant fails to respond within four weeks, the landlord is automatically released.
* if tenant objects, landlord may apply to the County Court for a declaration that release would be reasonable.

all be avoided via an Avonridge clause

46
Q

What function does an Avonridge clause have?

A

automatically releases a landlord from any continuing liability for the period the reversion is vested in them.

  • avoids need to obtain consent to be released via s.6-8 of LTA.
47
Q

How are post-1996 leases different from a tenant’s point of view?

A

tenant’s liability is extinguished once new tenant takes over.

cf. pre-1996 leases - privity of estate applies between current landlord and tenant, but original parties are still bound via privity of contract.

48
Q

What are relevant factors when determining whether an occupant has exclusive possession?

A
  • landlord retains key and right to access whenever it pleases.
  • provides services (i.e. cleaning, changing linen)
  • sharing clause - allows landlord to introduce new parties (although substance, and not form - beware of sham clauses)
  • right to relocate
49
Q

What circumstances are relevant when considering whether a sharing clause is a sham or genuine?

A

1) Size and nature of the accomodation
2) Relationship between the ocucpiers
3) Wording of the clause
4) Whether the clause has ever been exercised

50
Q

What factor will defeat claim to exclusive possession for business tenancies?

A

Degree of physical control over the premsies and conduct of the business is very significant.
* i.e. change layout of premises.

SQE1 - Land Law 🌴 (9 decks)

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