Chapter 5: Leasehold estates

Question 1

what is a leasehold?

Answer 1

legal estate in land subject to a fixed time period

Question 2

lease examples with no legal estate

Answer 2

Commercial lease

Student tenancy agreement

Question 3

what is a freehold reversion?

Answer 3

A landlord will retain the legal interest after granting a lease

Question 4

what is the condition on creating a sublease?

Answer 4

Must be for a shorter term than the original lease

Question 5

what is a fixed term lease?

Answer 5

agreed maximum term at the start (usually not rented)

Question 6

What is a period tenancy?

Answer 6

may last indefinitely (no end date)

keeps getting renewed at the end of the term (week to week, month to month, year to year)

a party must give notice to terminate

Question 7

when does a lease need to be registered?

Answer 7

more than 7 years

Question 8

what happens to a lease that is not registered but under 7 year?

Answer 8

overriding interest if formal requirements are met

Question 9

how is a legal leasehold created?

Answer 9

by deed

Question 10

when is a deed not necessary for a lease?

Answer 10

under 3 years

Question 11

what happens if a lease is not registered and over 7 years

Answer 11

overriding interest cannot apply

equitable interest only

Question 12

what are the characteristics of a lease?

Answer 12

Exclusive possession

Fixed duration

Completed correct formalities (deed)

Question 13

What is exclusive possession?

Answer 13

Tenant has the right to control the use of the property e.g (who can enter/ who cannot)

can exclude others even the landlord

Question 14

what is a licence?

Answer 14

personal right

no legal/ proprietary interest

grants permission to stay in the property

Question 15

why is it better for a tenant to have a lease?

Answer 15

more protection e.g question rent charge

Question 16

what is fixed duration?

Answer 16

fixed term agreed at the start = fixed for a maximum duration.

cannot exceed the landlords own term (if a new lease)

Question 17

what is a covenant?

Answer 17

promise between a landlord and tenant that they will/ not do something

Question 18

what are the landlord implied covenants?

Answer 18

quiet enjoyment - no interference

non-derogation from grant - cannot undermine tenancy for a specific purpose

repair - if not express implied against the landlord

Question 19

what are implied convents for a tenant?

Answer 19

paying rent/ taxes

repairing (good condition - not significantly reduce value)

not committing waste (not permanently changing the land)

Question 20

what rule applies for a breach of leasehold covenant between a landlord and tenant?

Answer 20

Privity of contract - only parties to the contract can sue or be sued

Question 21

what rule applies to leasehold covenants if the successors of the freehold estate took ownership pre 1996?

Answer 21

successors not bound by every covenant only ones which touch and concern the land

Between the old landlord & tenant = privity of contract

Between the new landlord & tenant = privity of estate

Question 22

if the successor of a freehold pre 1996 breached the terms who would be liable?

Answer 22

Old landlord STILL liable for any breach by the new landlord

unless can claim indemnity from new landlord

Question 23

what rule applies to leasehold covenants if the successors of the freehold estate took ownership post 1996?

Answer 23

Removes ongoing liability from the original landlord

Must write to tenant

Tenant must agree or no reply within 4 weeks - automatic release.

Question 24

if the successor of a freehold post 1996 breached the terms who would be liable?

Answer 24

the new landlord

if the new landlord goes bankrupt the tenant will bear the cost of the breach

Question 25

what rule applies to leasehold covenants if the successors of the leasehold estate took ownership pre 1996?

Answer 25

Between landlord (freehold owner) and original tenant (leasehold owner) = privity of contract Between the landlord (freehold owner) and new tenant (new leasehold owner) = privity of estate

Question 26

if the successor of a leasehold pre 1996 breached the terms who would be liable?

Answer 26

New tenant in breach of covenant - old landlord can sue. If new tenant cannot pay - old landlord can sue previous tenant

Question 27

what rule applies to leasehold covenants if the successors of the leasehold estate took ownership post 1996?

Answer 27

Removes all liability of the original tenant automatically.

Question 28

what happens to personal covenants if the freehold/ leasehold moves to successors

Answer 28

personal covenants = void

Question 29

what is alienation of covenants?

Answer 29

a clause in a lease preventing the assignment or sublet of a property

Question 30

what remedies are available to a landlord for breach of a lease agreement by a tenant?

Answer 30

Action for debt/ damages Injunction Specific performance Forfeiture

Question 31

what are the obligations on a landlord claim forfeiture for non-payment of rent

Answer 31

make a formal demand for outstanding rent (unless exemption in lease OR is 6 months late) Ensure there is a forfeiture clause in the lease

Question 32

what options are available to a landlord for forfeiture for non-payment of rent if all their obligations are satisfied

Answer 32

enter forcefully or apply to county court

Question 33

What relief is available for a tenant in breach of non-payment of rent subject to forfeiture

Answer 33

Pay within 5 days of hearing Court can stop proceedings for 4 or more weeks Pays in full = automatic relief

Question 34

what are the obligations on a landlord claim forfeiture for any other breach of covenant?

Answer 34

Must be a forfeiture clause in the lease Must consider whether the breach is remediable

Question 35

what must a landlord do if a breach of covenant is remediable?

Answer 35

serve notice to tenant to remedy the breach

Question 36

what must a landlord do if a breach of covenant is NOT remediable?

Answer 36

service notice and wait 14 days before applying to court

Question 37

what relief is available to a tenant in breach of covenant?

Answer 37

Show court they have remedied Persuade the court the lease should continue

Question 38

what remedies are available to a tenant for a landlord breaching a covenant?

Answer 38

damages injunction specific performance recoup cost of repairs from future rent (must give notice specifying repairs)

Question 39

what are the ways that a lease could end?

Answer 39

Expiration Forfeiture Surrender - completed by deed & consent by leaseholder Merger (merge leasehold and freehold titles - lease owner purchases free hold)

Question 40

what is privity of estate?

Answer 40

looks at the relationship between the landlord and the tenant in existence at that particular time