Land - Leases Flashcards
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Street v Mountford
Label is irrelevant, but lease must:
- be for EP
- be certain in duration
- with possibility of rent
Conditions for a lease to exist
- L and T must be separate parties
- L and T must have necessary capacity to grant the lease
- Lease must be for a lesser estate
- Tenant must have exclusive possession
- Lease must be for a term of years absolute
- There may be rent payable
Antoniades v Villiers
Sham leases may take the form of multiple agreements signed on the same day (amounting to EP)
Milmo v Carreras
Creation of a sublease with a longer term operates as an assignment
s1(1)(b) LPA 1925
A legal lease must be for a term of years absolute
Lace v Chandler
Parties must know date of commencement/termination of the lease from the outset
s149 LPA 1925
A lease for life operates as a lease for 90 years
Ashburn Anstalt v Arnold
There is no absolute requirement for rent under a lease
s52(1) LPA 1925
A lease will be legal if created as a deed
ss1(2) and (3) LP(MP)A 1989
A deed must be:
- Signed and witnessed
- Identified as such
- Delivered
- Sealed (if before 31st July 1990)
s2 LP(MP)A 1989
Agreement to grant a lease must be:
- In writing
- Signed by both parties
- Contain all the terms
s54(2) LPA 1925
Leases of less than 3 years may be created orally, and may be deemed periodic tenancies, PROVIDED:
- T may take immediate possession
- Lease is granted at best rent
- T may take free from a fine
Fitzkristan v Panayi
Best rent equates to market rent
Walsh v Lonsdale
Agreements to grant a lease give rise to an equitable lease only
Cowell v Rose Hill
A licence does not create a proprietary interest in land
Winter Gardens Theatre v Millennium Productions
Licences may be revoked at any time with reasonable notice
King v David Allen
Licences are not generally enforceable against a third party, UNLESS
- coupled with a grant of a proprietary interest s1(2) LPA 1925
- arise by way of estoppel
- take the form of mutual licences
- confer rights akin to those available for an interest in land, e.g equitable remedies or assignment
Inwards v Baker
An estoppel licence is a proprietary right
Ives v High
A mutual licence is a proprietary right
Binions v Evans
A licence giving rise to a CT is a proprietary right
Wright v MacAdam
Licences may give rise to implied easements, which are proprietary rights
Class C(iv)
Equitable lease
s2 LCA 1972
Equitable leases must be registered as Class C(iv) land charge in UL
ss3 and 4 LCA 1972
Land charges must be registered against the owner’s name by the date of sale to bind a third party in UL
s27 LRA 2002
Legal lease of more than 7 years is a registrable disposition
s29 LRA 2002
Legal lease must be registered by date sale registered to bind a third party
Sch. 3 para. 2 LRA 2002
Unregistered leases of more than 7 years may bind third party as overriding interests
Sch. 3 para. 1 LRA 2002
A legal lease of less than 7 years will override provided it existed before date of registration
s32 LRA 2002
An equitable lease is a minor interest and mist be protected by notice
Cricklewood Property v Leighton’s Investment Trust
T has covenant to pay rent, even if buildings are destroyed
Lee-Parker v Izzet
T may offset rent against cost of repairs
s1 LTA 1988
L must answer request for consent:
- within reasonable time
- must give written reasons for refusal
s19(1) LTA 1927
L may not unreasonably withhold consent in relation to s qualified prohibition
International Drilling Fluids v Louisville Investments
Reasonable grounds for withholding consent include:
- Grounds that concern the subject matter of the lease
- Unsuitability of proposed use by intended assignee
- Benefit to L of refusing would not unreasonably outweigh detriment to T
Kenny v Preen
Common law implied covenant of quiet enjoyment
Jenkins v Jackson
Noise will not usually be enough to breach covenant of quiet enjoyment
Southward LBC v Mills
Noise must be excessive to give rise to a breach of quiet enjoyment
McMillan v Singh
Harassment or unlawful eviction will amount to a breach of quiet enjoyment
Aldine v Latimer Clark
L must not derogate from original grant so as to render premises unfit for original purpose
s11 LTA 1985
Implied covenant to repair only affects residential properties, and then only in respect of:
- structure/exterior of property
- installations for supply of gas/electricity/water
O’Brien v Robinson
Implied covenant to repair only arises where L has/should have knowledge of the defect
Quick v Taff
Defect must amount to more than a mere inconvenience, e.g, condensation
Warren v Keen
L will be under no obligation to carry out a repair that would be reasonable for T to perform
Moule v Garret
Original T may seek indemnity from current assignee in default of covenant
s17 LT(C)A 1995
L must serve notice on original T within 6 months if he intends to claim for a breach by an assignee
City of London Corp v Fell
Original L/T released from obligations if lease renewed at end of term
Spencer’s Case
Assignee T will have benefit/burden of real covenants whilst lease vested in him
ss141 and 142 LPA 1925
Assignee L will have benefit/burden of real covenants whilst lease vested in him
P&A Swift Investments
Al covenants are those which ‘touch and concern the land/have reference to subject matter of lease’
- Only those that benefit L/T whilst they own the land
- Only those covenants affecting the nature, quality, mode of use or value of land
- Only those not expressed personally
ss5 and 6 LT(C)A 1995
Original L/T will be released from their obligations under the lease upon assignment/sale of the reversion
BHP Petroleum v Chesterfield Properties
Original L/T will only be release from non-personal covenants under ss5 and 6 LT(C)A 1995
s16 LT(C)A 1995
L has right to request T to sign an AGA as a condition of agreeing to assignment; this ends upon further assignment
s19 LT(C)A 1995
Original T of post-1996 lease may regain control by way of an overriding lease if he is called upon to pay assignee’s arrears
s3(2) and (3) LT(C)A 1995
Assignee L/T will have the benefit/burden of non-personal covenants
Tulk v Moxhay
Headlessor may not enforce covenants against sublesse of which sublessee has no notice
Tenant’s remedies for breach of covenant
- Damages
- Repudiation
- Specific performance
- Appointment of receiver
Landlord’s remedies for breach of covenant
- Action for debt
- Distress
- Forfeit
- Standard remedies
s19 LA 1980
L may not bring an action for debt to recover arrears of more than 6 years
Distress
- Bailiff must have written authority of L and certificate from county court
- L must not seek to forfeit as well
- Where lease is for commercial premises, the remedy does not apply (Sch. 12 Tribunals, Courts and Enforcement Act 2007)
- Residential tenancies may be open to ECHR claims (fair hearing)
Forfeit (non-payment of rent)
- Must be expressly permitted in lease
- Must make formal demand for rent
- Must not waive right by accepting rent
- Must obtain court order for residential tenancies
Duppa v Mayo
Formal demand for rent arrears needed to forfeit
- UNLESS the lease contains a clause removing the requirement
s210 Common Law Procedure Act 1852
- No formal demand for arrears needed to forfeit if at least 6 months in arrears
- Court may grant relief to allow T time to pay arrears
- Court will grant relief if arrears are paid before court hearing
Central Estates (Belgravia) Ltd v Woolgar No. 2
Acceptance of rent by L will waive right to forfeit
s3(1) Protection from Eviction Act 1977
L must obtain court order for possession when forfeiting residential tenancy
Forfeit (other breach)
- Must be expressly permitted in lease
- Must not waive right by accepting rent
- Must obtain court order for residential tenancies
- Must serve notice on T
s146 LPA 1925
Notice must be served on T when seeking to forfeit, which sets out:
- nature of breach
- requirement to rectify within reasonable period
- requirement to pay compensation, if desired
Billson v Residential Apartments
Reasonable time to remedy a breach of covenant is 3 months
Rugby School v Tannahill
Presumption that negative covenants are not capable of remedy, e.g. stigma of prostitution
Expert Clothing v Hill House
Presumption that positive covenants are capable of remedy
Thatcher v Pearce
If arrears are paid, T may retake lease on original terms
