Estates in Land - Leasehold Flashcards
What is a Licence?
Confers a personal right of occupation which may or may not be contractual.
Does NOT confer a legal estate in land.
What is a Lease?
Confers the temporary right in land to a tenant
What are the requirements for a valid lease?
Complete agreement
Certainty of Term
Exclusive Possession
Fixed Term Lease
Where the maximum duration of the arrangement is known from the outset.
Lace v Chantler [1944]
Lease for ‘duration of war’ failed because didn’t know when the war would end
Ashburn Anstalt v Arnold (1989)
If either party to a lease can bring the arrangement to an end the term is not uncertain.
Prudential Assurance v London Residuary Body [1992]
If an arrangement is for an uncertain amount of time from the outset, it cannot be a lease.
HoL. Overruled decision in Ashburn
Berrisford v Mexfield Housing Cooperative [2011]
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
Periodic Term
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.
Barclays Wealth Trustees (Jersey) Ltd v Erimus Housing Ltd [2014]
Payment of rent does not give rise to a presumption of periodic tenancy, but is just one of the factors taken into account.
Ladies’ Hosiery and Underwear Ltd v Parker [1930]
Term of the periodic tenancy depends upon the period of reference to which the rent is calculated, rather than intervals its payable.
Tenancy at Will
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
Tenancy at Sufferance
Tenant remains in possession without the consent of the landlord after the lease has come to an end.
Exclusive possession
Right to exclude all others from the property, including the landlord.
One of the requirements for a lease.
Formalities to create a legal lease exceeding 7 years
Must be created by deed - LPA 1925, s 52
Must be substantively registered - LRA 2002, s27(2)(b)(i)
Formalities to create a legal lease between 3 and 7 years
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
Formalities to create a short lease (not exceeding 3 years)
No formal requirements
Don’t need to be in writing
Don’t need to be substantively registered
What are the results of non-compliance with the formalities to create a legal lease?
Legal periodic tenancy
Equitable lease (if there is a document which constitutes a valid contract to create a lease)
Prudential Assurance Co Ltd v London Residuary Body
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
Formalities to Transfer a Legal Lease (Assignment)
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)
Walsh v Lonsdale (1882)
Where there is conflict between common law and equity, equity prevails.
How can an equitable lease arise?
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
How are equitable leases protected?
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)
What are the disadvantages of an equitable lease v legal lease?
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
Coatsworth v Johnson (1886)
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
