Essentials of a Lease

Question 1

Which of the following is an essential legal ingredient of a lease?
A. Exclusive possession
B. An upward-only rent review
C. Landlord access at any time
D. A rent-free period

Answer 1

A – Exclusive possession
Explanation: Exclusive possession is what makes a lease a lease. It allows the tenant to exclude all others, including the landlord (subject to agreed rights of entry).

Question 2

What must be true for a legal lease of more than 3 years to be valid at law?
A. It must be registered with the Land Registry
B. It must be created by deed
C. It must include a break clause
D. It must be witnessed by a solicito

Answer 2

B – It must be created by deed
Explanation: A lease for over 3 years must be made by deed to be valid as a legal estate in land.

Question 3

A tenant is granted a one-year lease orally and is given immediate possession. Is this lease valid?
A. No, all leases must be in writing
B. Yes, short leases can be oral if certain conditions are met
C. No, leases under three years must be by deed
D. Yes, but only if it is registered

Answer 3

B – Yes, short leases can be oral if certain conditions are met
Explanation: A lease of 3 years or less can be valid even if oral, provided there is possession and market rent is paid.

Question 4

A lease says it lasts “until the tenant leaves the company.” Why might this not qualify as a valid lease?
A. It is too short
B. It is not signed by the landlord
C. It lacks a certain term
D. It includes a repair obligation

Answer 4

C – It lacks a certain term
Explanation: A lease must be for a fixed or periodic term. If the duration is uncertain (e.g., “while employed”), it may not be valid.

Question 5

A landlord insists on a full repairing and insuring (FRI) lease. What does this mean for the tenant?
A. The tenant is responsible for utilities only
B. The tenant is liable for all repairs and insurance
C. The landlord must maintain the premises
D. The tenant has an option to purchase the property

Answer 5

B – The tenant is liable for all repairs and insurance
Explanation: Under an FRI lease, the tenant takes on maintenance and insurance costs, leaving the landlord with “clear rent.”

Question 6

A tenant signs a 20-year lease with no break clause. What is a potential disadvantage for the tenant?
A. The rent will automatically decrease
B. The lease may not be valid in law
C. The lease gives no flexibility to exit early
D. The landlord can change the term unilaterally

Answer 6

C – The lease gives no flexibility to exit early
Explanation: A long lease with no break clause creates a binding long-term obligation with no early exit.

Question 7

A solicitor is advising a landlord who wants to restrict alterations to the property. Why might the landlord do this?
A. To protect the reversion and ensure the premises are returned in original condition
B. To help the tenant customise the space freely
C. To allow rent reviews more often
D. To create a fixed term of 3 years

Answer 7

A – To protect the reversion and ensure the premises are returned in original condition
Explanation: Landlords often restrict alterations to maintain the long-term value and condition of the property.

Question 8

A tenant wants to negotiate the ability to assign or sublet the lease. This request reflects which of the tenant’s objectives?
A. Maximising the landlord’s investment
B. Transferring the freehold
C. Flexibility to deal with change
D. Creating a periodic tenancy

Answer 8

C – Flexibility to deal with change
Explanation: The ability to assign or sublet gives the tenant flexibility if their business needs change.