Land 5 - Leases Flashcards
Capable of being legal
Yes s1(1)(b) LPA 1925. term of years absolute in possession
More than three years - yes, must meet criteria in s 1 LPMPA 1989.
Parol (less than 3) -
immediate right to possess
Can be oral
Market rent
No charge fine or premium.
Equity may intervene when create transfer or deed not valid.
By contract to create of transfer -
contract complying with s2 PMPA 1989 and clean hands.
Contract to create existing legal estate will create equitable right (estate contract).
Deed not valid -
contract, complying with s2, clean hands.
Characteristics of lease
Duration permitted in leasehold
Grant must give exclusive possession
Grant must have correct formalities
License creates only personal right, cannot assign, no statutory protection.
Lease for life 90 years ends on death.
Service occupancies are a license.
Payment of rent supports view it is a lease.
Covenants?
Implied -
quiet enjoyment (from landlord also PEA 1977 protection from unlawful eviction)
obligations in respect of fitness of the property. - obliges landlord to keep repair structure and exterior, supply of water gas electricity, space heating and water.
Only liable when notified.
Alienation
On property notes.
S19 (1) - original parties and non-residential.
Enforcements of covenants
Old lease (before 1996)
-privity of contract
Lasts for duration of lease.
T2 privity of estate.
Liable for breach of positive and restrictive;
Swift test;
touching and concerning
must affectct nature
must not be expressed to be personal.
Can pursue T1 by privity of contract and T1 and T2 by privity of estate.
Recovery between tenants
Original tenant sued as a result of breach which they did not commit
At common law against tenant in possession
On indemnity covenant
Implied into assignment for value by s77 LPA (unregistered) and Such 12 Para 20 Land Reg Act 2002 (registered title).
New leases (after 1996)
Tenant bound only whilst lease vested in them.
All covenants pass unless expressed as personal.
If landlord changes same even if do not touch the land. Only while hold reversion
AGAs
Agrees that incoming tenant will perform duties.
If assigned ceases to affect.
Can only seek AGA where;
covenant against alienation without consent
reasonable to do so in commercial lease.
Recovery between tenants
Assignee on bais of Moule v Garett
-Express indemnity given by immediate assignee.
Before landlord can pursue former tenant they must;
serve default notice informer tenant within six months of charge falling due.
If T pays can request overriding lease.
Same duration as original less three days on same terms granted by landlord to former tenant.
former tenant becomes landlord to defaulting assignee but obliged to pay rent and abide covenants.
Landlord remedies for non-payment of rent
Debt action -
If former s17 default notice needs.
Six years limitation
Commercial rent arrears recovery (CRAR) -
only against tenant in possession.
Seize tenants goods and sell them.
Only commercial, only normal rent. Exceed Sven days rent.
By authorised enforcement agent.
Forfeiture -
tenant in possession only
retake physical premisses
must be expressly be in lease.
may waive right expressly or impliedly.
Must present themselves on due date between sunrise ad sunset
Forfeit by
peacefully re-entering
suing for and obtaining possession order in courts.
Wholly or partly as dwelling - must obtain court order.
Tenant may apply for relief if
;pay before trial
or -within six moths (apply to court)
-if by re-entry six months does not apply - equitable relief.
Landlords remedies for breach of other covenants
Damages -
such as fairy and reasonably considered
- reasonably supposed to be in contemplation of the parties.
Limited to amount reversionary interest diminished in value.
If three or more must first serve s146 LPA 25 notice.
28 days to counter (NFA without leave of court).
Specific performance -
Forfeiture -
expressly reserved in lease.
May waive breach
Serve s146 LPA notice -
specifying breach, requiring remedy, requiring compensation.
If assignment does not need notice although tenant may still rectify.
If headlease forfeited subtenant must apply as all subleases nullified.
Self-help remedy.
tenant remedies for breach of landlord covenant
Specific performance
Damages
Self-help - no automatic right to withhold rent. If tenant carries out, may withhold unit costs have been repaid.
If tenant does withhold and landlord sues may have unliquidated claim set off against liability.
Only where manifestly unjust and sufficient connection.
Can be excluded.
Termination of lease
Effluxion of time
Notice to quit
Break clause
Surrender
Disclaimer - bankruptcy/liquidation
frustration
Repudiatory breach - goes to root of contract and regard contract as end
Merger
