Introduction to leases

Question 1

What is the LPA definition of a lease and where is it defined?

Answer 1

Term of years absolute

s205 (1)

Question 2

who is the lessor and who is the lessee?

Answer 2

Lessor = landord

Lessee = tenat

Question 3

What is the diference between a lease and a license?

Answer 3

License:
- simply confers a personal permission/ personal right to be on someone’s land
- justifies what otherwise would be trespass
- can only be enforced against the grantor
- no security of tenure
- not entitled to sure a third party for nuisance or trespass

Lease
- gives a proprietary right in the land
- can be enforced against third parties
- can confer the right of security of tenure
- receive various statutory protections

Question 4

What is the approach for deciding if the agreement is a lease or a license?

Answer 4

Street v Mountford:

The court will look at the substance of the agreement and not the label - so just because the document is called a “license” it may not be in substance

FOR A LEASE TO EXIST THERE MUST BE

1. CERTAINTY OF TERM AND
2. EXCLUSIVE POSESSION

Payment of rent is not a condition for a lease

Question 5

What is certainty of term?

Answer 5

Tenancy must be granted for a certain duration

So you need to know when the arrangement will END

In Lace v Chantler - lease for duration of war failed for lack of certainty

Usually satisfy this by a fixed term lease eg 5 years

Question 6

What is the exclusive possession?

Answer 6

Right to exclude others from the property including the landlord.

Question 7

How can you obtain certainty of term?

Answer 7

Fixed term lease

or

Periodic term lease

Question 8

What is a periodic lease?

Answer 8

A lease for one period

generally weekly, monthly and extends automatically until a party gives notice to terminate the tenancy

Can be cerated expressly or impliedly;

Express periodic tenancy is where there is a written agreement documenting the arrangement

Implied periodic tenancy is where there is nothing set out in writing but certain terms arises by looking objectively at the circumstances including payment and acceptance of rent on a periodic basis

Question 9

How is the term of periodic tenancy calculated?

Answer 9

The term depends on the period by reference to which the rent is calculated rather than intervals at which it is payable

eg if tenant pays 10k yearly by 4 quarterly payments the tenancy is a yearly tenancy and not quarterly because rent is calculated annually