Land 8 - Licences

Question 1

If a landlord forfeits a headlease, what happens to the sublease?

Answer 1

It is automatically terminated too

Question 2

What are the requirements of a lease?

Answer 2

1. Certainty of term (either fixed or periodic)
2. Exclusive Possession
3. Correct formalities

Question 3

What factors could defeat a lease?

Answer 3

• No ICLR (e.g. family arrangement; act of friendship/generosity)
• Service occupancy - live there for employment.

Question 4

What is a licence?

Answer 4

• A personal permission to be on someone’s property

Question 5

Does a licence bind new owners or third parties?

Answer 5

No

Question 6

What is the remedy for breach of licence?

Answer 6

Only damages

Question 7

What scenarios indicate no exclusive possession?

Answer 7

• Landlord provides services e.g. cleaning
• Landlord retains a key: purpose for which key is retained is important - is right of access restricted or unrestricted?
• Sharing clause: landlord reserves right to share property or introduce others - must check if sham or not

Question 8

What factors help determine whether a sharing clause is a sham or not?

Answer 8

(a) Size & Nature of Accommodation: is it realistic to introduce others?
(b) Relationship between Occupiers: Is it appropriate to introduce someone else?
(c) Wording of clause: the wider the clause, the likelier it’s a sham
(d) Has the clause ever been exercised?