6. Leases Flashcards
Requirements for a valid lease or 3 years or less?
parole lease
- 3 years or less, including month to month
- Market rent
- No premiums
4.Immediate right to possess
Requirements for a valid lease or 3 years or more?
by deed:
* in writing
* signed
* witnessed
* delivered
* clear it is a deed on the face
When will equity intervene?
- Tried to make a deed but failed or made a contract
- clean hands
- specific performance available
- formalities met: writing,signed and contains agreed terms
Characteristics of a lease?
- Fixed time peroid
- exclusive possession
- correct formalities
What if a lease doesnt have one of its features, what is it called?
license
What does exclusive possesion mean?
- control over property
- can exclude others including landlord
Explain periodic tenancy simply
Runs from month to month, renews automatically at the end of every month and is only termianted by notice from either side
Katie is the freehold owner of 32 Mabel Grove (‘the Property’). Katie allows Sally into occupation of the Property and Sally pays a rent of £600 per calendar month. Sally has now been in occupation for five years.
Has a legal lease been created?
Yes it is a parole lease - look at how often rent is paid (monthly = less than 3 years = parole lease)
Difference between assignment and underletting?
Assignment: pass whole lease to somoene else (step in old shoes)
Underletting: new lease created and tenant beocmes sub-landlord
Tenant covenant in lease?
- pay rent
- contribute to insurance
- repairs
- alterations/assignment
Landlord implied covenant in lease?
- not interrupt tenant’s quiet enjoyment of land
- repair external/structure of propery/water/gas/electric/sanitation etc.
only liable once notified
Can landlord deny giving consent?
Yes but cannot be unreasonabley witheld or delayed (reason can be unreasonble)
If landlord denies consent, what must be given?
Reasons
What is privity of estate?
between current landlord and current tenant
* exclusive possession, must pay rent and lease is in your name
Liability under old lease?
Before 1996
- T1: always liable for rest of lease (privity of contract)
- T3: liable as long as they remain tenant (privity of estate)
new landlord can come after each or both
What if T1 is being sued for a breach T3 committed?
indemnify T1 for the breach T3 did
Liability under new lease?
after 1996 - only pursue current tenant + anyone gave AGA
Is outgoing landlord released from liability in new leases?
NO - must apply to be released otherwise still liable (tenant can pursue old/new landlord or both)
What is an AGA?
Promise by outgoing tenant to the landlord guaranteeing the (only immediate next in line) incoming tenant will follow covenants and if they dont, former tenant will be liable
What if former tenant is pursued via AGA for breach they didnt commit?
Indemnity if given by assignee
Procedure for landlord to pursue tenant for non payment of rent?
S17 - give notice within 6 months of rent due (can only recover the last 6 months rent)
If T1 pays for the rent T3 failed to pay, what can they request?
S19 - overriding lease from landlord to become T3’s landlord
How long is overriding lease?
Same as orginan lease - 3 days
Landlord’s remedies for non-payment of rent?
- Rent deposit or guarantors
- Debt Action
- CRAR
- Forfeit