Leases Flashcards
In a lease, the landlord retains the _______ estate but does not have the right to _________ __________
freehold, physical possession
Can a tenant transfer their leasehold to another person? If so, when?
Yes - if the lease allows
What is an assignment?
Where a tenant disposes of their entire remaining interest in the lease to another person
What is a sublease/underlease?
Where a tenant disposes less than their remaining interest in the lease
To create a sublease instead of an assignment, the tenant must grant a sublease for a term at least how many days shorter than their own lease?
1 day
What is a head lease?
The lease between a landlord and an original tenant
What will the assignee and landlord usually be required to sign in order to create a privity of contract and so the landlord can hold the assignee liable?
Licence to assign
Can a landlord hold a subtenant liable for breaches under a lease? Why/why not?
No - there’s no privity of contract between them
What is a fixed term tenancy?
A tenancy for a fixed term e.g. 3 months
What is a rent review clause?
A term in the lease that provides how the rent in a long lease can be increased
What is a reversionary lease?
A lease which provides that it won’t take effect until a later date
What is a periodic tennacy?
A tenancy defined by a period of time e.g. ‘yearly tenancy’
Period tenancies will ____________ ______ for another period until one of the parties gives _______ that they are bringing the lease to an end
automatically renew, notice
What is a tenancy at will?
A tenancy which lasts for so long as both parties desire
What must a lease make clear at the date of the agreement?
When the term of the tenancy will begin and end
What happens if a lease is uncertain in its start and end date?
The lease will be void for uncertainty
Generally, how must a legal lease be created?
By deed
How can a legal lease for 3 or less years be created without a deed and what are the 2 requirements?
Legal Lease can be created in writing or orally
- T takes possession of the leased premises
- Lease is at the market price rent
What are the 3 requirements for a lease to be enforceable in equity?
- In writing
- Signed by the parties
- Incorporates all terms expressly agreed by the parties
What is a licence?
A personal right to enter or use the land for an agreed purpose
What are the three key characteristics of a lease?
- T’s right to exclusively possess the land
- A certain Fixed or periodic term
- Given in exchange for consideration
What are the 2 key things that licences generally don’t grant or confer which a lease does?
- Exclusive possession of the land
- Estate/interest to the land
What are the five covenants (promises) that a lease would typically include?
Clue: DUPQA
- Duties to repair
- Uses
- Pay Rent
- Queit enjoyment
- Alteration of premises
What is a qualified alterations covenant?
A provision that provides for non-structural alterations to be made to premises under a lease, although this will usually require the landlord’s consent which cannot be unreasonably witheld
What is an absolute alterations covenant?
Can a landlord still agree to alterations?
A provision that absolutely prohibits any structural alterations to premises under a lease.
The landlord may still agree to alterations but has no obligation to i.e. they can always withold consent
If a commercial tenant fails to pay the agreed rent, what statutory right does the landlord have?
To take control of T’s goods and sell them
What is forfeiture?
A landlord’s right to end the lease early and re-enter the premises
Is forfeiture automatically available as a remedy for non-payment/breach of obligation?
No
When is forfeiture as a remedy available?
Only if it’s expressly included in the terms of the lease
If a forfeiture clause is included in a lease, what must the landlord serve on the tenant and what 3 things should it include?
Landlord should serve notice on the tenant
- Specifies the breach
- A reasonable time for breach to be remedied
- Any compensation payable to the landlord
What are two remedies available to a party where the other fails to carry out repair obligations?
- Damages
- Specific performance
What right is granted to the landlord under a Jervis v Harris or ‘self-help’ clause?
The right to enter the premises and make a repair
What are the three requirements to rely on a Jervis v Harris clause?
- T breaches a covenant of repair
- L gives T notice of the work to be done
- T fails to comply with notice
What can the landlord recover under a Jervis v Harris clause?
The costs of the repair as a debt
Unless prohibited, T has the right to ______ the lease or grant ________ out of their interest in the property
assign, subleases
If there’s an absolute covenant against assignment, can a tenant still assign the lease?
Not automatically, they may ask the landlord to amend the covenant but this is in their full discretion
If there’s a qualified covenant against assignment, can the landlord’s consent to the assignment be witheld?
Yes - but It cannot be unreasonably witheld
How should an agreement to permit assignment be formalised if it wasn’t agreed to in the original lease?
via a Deed of Variation of the lease
If an assignment of a lease is made on or after 1 January ____, tenants are ___________ ______ from their covenants upon assignment of the lease to a third party
1996, automatically released
What is an Authorised guarantee agreement?
A form of guarantee which may be given (as a condition of the landlord’s consent) by an outgoing tenant of its assignee’s obligations under the lease. The guarantee will only endure for so long as the assignee remains the tenant
If an assignment of a lease is made before on or before 31 December ____, the original landlord and original tenant automatically remain ______ to each other during the whole lease period, even if the lease is _______, unless one of them expressly releases the other
1995, liable, assigned
An assignment of a lease must be __ _____, even if the original lease was oral
by deed
What is a break clause?
A clause in a lease allowing the parties to terminate it early
Can the parties in a fixed term lease terminate early without a break clause? If so, when?
Yes - if they mutually agree
What is surrender?
Where parties mutually agree that T will give up possession to L
How is express surrender usually carried out?
By deed
When does implied surrender occur?
When both parties show they consider the lease to be at an end
Generally, if a headlease is brought to an end by expiry, notice to quit or forfeiture, will a sublease end as well?
Yes
Will a headlease that ends by surrender automatically end the sublease?
No
If a headlease ends by surrender, the ________ will become the tenant of the ______ _________ on the terms of the ________
subtenant, head landlord, sublease
