Estates in Land - Leasehold

Question 1

What is a Licence?

Answer 1

Confers a personal right of occupation which may or may not be contractual.

Does NOT confer a legal estate in land.

Question 2

What is a Lease?

Answer 2

Confers the temporary right in land to a tenant

Question 3

What are the requirements for a valid lease?

Answer 3

Complete agreement
Certainty of Term
Exclusive Possession

Question 4

Fixed Term Lease

Answer 4

Where the maximum duration of the arrangement is known from the outset.

Question 5

Lace v Chantler [1944]

Answer 5

Lease for ‘duration of war’ failed because didn’t know when the war would end

Question 6

Ashburn Anstalt v Arnold (1989)

Answer 6

If either party to a lease can bring the arrangement to an end the term is not uncertain.

Question 7

Prudential Assurance v London Residuary Body [1992]

Answer 7

If an arrangement is for an uncertain amount of time from the outset, it cannot be a lease.

HoL. Overruled decision in Ashburn

Question 8

Berrisford v Mexfield Housing Cooperative [2011]

Answer 8

A lease of uncertain duration can not take effect as a 90-year lease determinable on either the uncertain event or death occurring.

Court stated that the justification for the requirement of certainty of term for the creation of a valid lease had ‘long since gone’ but stopped short of removing the requirement

Question 9

Periodic Term

Answer 9

An arrangement where the length of term is not fixed in advance but can still have a ‘certain term’ and therefore potentially be a tenancy.

Runs period to period and is automatically renewed until either party serves notice.

Question 10

Barclays Wealth Trustees (Jersey) Ltd v Erimus Housing Ltd [2014]

Answer 10

Payment of rent does not give rise to a presumption of periodic tenancy, but is just one of the factors taken into account.

Question 11

Ladies’ Hosiery and Underwear Ltd v Parker [1930]

Answer 11

Term of the periodic tenancy depends upon the period of reference to which the rent is calculated, rather than intervals its payable.

Question 12

Tenancy at Will

Answer 12

Where the tenant occupies land with landlord’s consent on understanding either party can terminate at any time.

Party has exclusive possession in the absence of a term certain and does not pay rent

Question 13

Tenancy at Sufferance

Answer 13

Tenant remains in possession without the consent of the landlord after the lease has come to an end.

Question 14

Exclusive possession

Answer 14

Right to exclude all others from the property, including the landlord.

One of the requirements for a lease.

Question 15

Formalities to create a legal lease exceeding 7 years

Answer 15

Must be created by deed - LPA 1925, s 52

Must be substantively registered - LRA 2002, s27(2)(b)(i)

Question 16

Formalities to create a legal lease between 3 and 7 years

Answer 16

Must be created by deed - LPA 1925, s 52

Cannot be substantively registered but still take effect as legal leases if comply with LPA 1925, s52

Question 17

Formalities to create a short lease (not exceeding 3 years)

Answer 17

No formal requirements

Don’t need to be in writing

Don’t need to be substantively registered

Question 18

What are the results of non-compliance with the formalities to create a legal lease?

Answer 18

Legal periodic tenancy

Equitable lease (if there is a document which constitutes a valid contract to create a lease)

Question 19

Prudential Assurance Co Ltd v London Residuary Body

Answer 19

If relevant formalities have not been complied with, if tenant enters into possession and pays rent by reference to a period in accordance with the LPA 1925, s54(2), the common law may recognise a legal periodic tenancy

Question 20

Formalities to Transfer a Legal Lease (Assignment)

Answer 20

Completed by deed – S52 LPA 1925

Registered in accordance with the LRA 2002, s27(2)(a) if lease already registered

Registered for the first time in accordance with LRA 2002, s4(1)(a) and s4(2)(b)

Question 21

Walsh v Lonsdale (1882)

Answer 21

Where there is conflict between common law and equity, equity prevails.

Question 22

How can an equitable lease arise?

Answer 22

Failed legal lease

When agreement made to grant a legal lease

When agreement made to transfer a legal lease

If the person granting the lease only has an equitable estate in land

Question 23

How are equitable leases protected?

Answer 23

Entering a notice on the charges register - LRA 2002, s32

OR

An equitable lease coupled with discoverable occupation overrides the register – LRA 2002, Sch1 para 2 (unregistered) and LRA 2002, Sch 3 para 2 (registered)

Question 24

What are the disadvantages of an equitable lease v legal lease?

Answer 24

Specific Performance is discretionary - must have clean hands

Not as enforceable v 3rd parties

Easements will not pass under S62 LPA 1925

Cannot enforce covenants against successors

Question 25

Coatsworth v Johnson (1886)

Answer 25

He who comes to equity must come with clean hands - if a tenant seeks specific performance, but has been in breach of agreement, he will be refused specific performance