BPP Study Notes Ch 3: Leasehold Flashcards
What is the formal name for a leasehold?
term of years absolute
How is a leasehold created in the most general sense?
one person with an estate in land grants another the temporary right to exclusive use and enjoyment of it
How is a license distinguised from a lease?
license gives a personal right of occupation, but does not confer a legal estate in land
(Where is ‘term of years absolute’ defined?)
s205(1)(xxvii) LPA 1925)
What are the two basic requirements for a lease?
- certainty of term
- exclusive possession
How can certainty of term be shown?
demonstrating either
- fixed term
- periodic term
What is a fixed term lease?
- the maximum duration of the arrangement is known at the outset
What case sets out the need for certainty of term?
Prudential Assurance v London Residuary Body
What is a periodic tenancy?
- length of term not fixed in advance
- runs from period to period (weekly, monthly, quarterly, yearly etc)
- automatically renewed until either party serves a notice to quit upon the other
How can a periodic term tenancy be created?
- expressly: by written agreement
- impliedly: no written agreement but the certain term arises simply by the payment and acceptance of rent on a periodic basis.
Give an example of a case where a periodic tenancy was implied.
Prudential Assurance v London Residuary Body
How is the period calculated in periodic tenancies?
- by the period by reference to which the rent is calculated
- not the intervals by which the rent is payable
- eg £1000 per year in 4 quarterly payments; one period is one year not one quarter.
What case evidences how to calculate the term of a periodic tenancy?
Ladies’ Hosiery and Underwear v Parker
What is a tenancy at will?
- where the tenant occupies land with the owner’s permission on the understanding that either party can end the tenancy at any time
- gives tenure between landlord and tenant but no estate
What is a tenancy at sufferance?
- Where a tenant holds over (remains in possession without the landlord’s consent after the lease has ended)
- original entry was lawful so therefore no trespass
- if they start paying periodic rent and it is accepted a common law periodic tenancy is created
What happens if a tenancy for life is granted?
- automatically converted into tenany for fixed term of 90 years
What does ‘exclusive possession’ mean?
the tenant has the right to exclude all others from the property, including the landlord.
What are the formalities for creating a lease of more than 7 years?
- created by deed: s52 LPA 1925
- substantively registered: s27(2)(b)(i) LRA 2002
What are the formalities for creating a lease of more than 3 but less than 7 years?
- created by deed: s52 LPA 1925
- do not need to be registered
How do leases of less than 7 years relate to a new owner of the freehold estate?
- unregistered interests which override registered dispositions
- therefore will bind new estate owners
What kind of leases do not need to be in writing? What gives the authority for this?
- s52(2) LPA 1925
- short fixed term leases (3 years or less)
- express periodic leases (where there is a tenancy agreement)
- implied periodic leases
What are the possible outcomes if someone fails to comply with the formalities of creating a lease?
either
- possible periodic tenancy
- possible equitable lease
How might a possible periodic tenancy come into being? Give a case as an example.
- if the formalities for creating a lease have not been met and
- if the tenant enters into possession and pays rent by reference to a period
- Prudential Assurance v London Residuary Body
How might an equitable lease come into being?
- if the formalities for creating a lease have not been met and a contract to create a lease exists that complies with s2 LP(MP)A 1989
- if there has been a mere agreement to grant a lease (this agreement, as a land contract, must comply with s2 LP(MP)A 1989
- if the person granting the equitable lease only holds an equitable state themselves; can’t grant more than they have.
What is a transfer of a legal lease called?
an assignment
What are the formalities for an assignment?
- must be completed by deed regardless of the lease’s duration
- if the lease has already been registered, the assignment must be registered
- if the lease has not been registered but has more than 7 years to run at the date of assignment it gives rise to compulsory first registration
What must a contract to transfer a legal lease comply with?
s2 LP(MP)A 1989
What must a contract for lease contain?
parties premises rent duration date of commencement any other material terms
How do equitable leases relate to new owners?
- not automatically binding
- equitable tenants need to give notice to the land charges register.
What formalities should an assignment for an equitable lease comply with?
- minimum requirement from s53(1)(c) LPA 1925
- contract of assignment should comply with s2 LP(MP)A 1989
If there is a conflict between an equitable lease and a common law lease, which one prevails? Why? From what case?
- equity prevails
- because following Earl of Oxford’s case, equity law prevails over common law in courts
- Walsh v Lonsdale
What are the disadvantages of an equitable lease?
- existence is dependent on specific performance, which is discretionary; Cornish v Brook Green Laundry
- an equitable lease is not a conveyance so certain easements do not pass with it
- may be harder to enforce covenants (promises) when passing an equitable lease.
What does a court do if an uncertain term is granted to an individual tenant? What case governs this?
- treated as a lease for life
- therefore converted automatically into a lease for 90 years
- Berrisford v Mexfield Housing Co-operative
If a domestic property is conveyed into joint names of cohabitants without any presumption of trust, what does the court assume in relation to ownership? According to what case?
- that there will be an equal division of beneficial title unless one party can establish that this was not the parties’ original intention or that the parties’ intentions changed after their purchase
- Stack v Dowden