Leases

Question 1

Requirements for a lease

Answer 1

For a valid lease to exist there must be
A certain term
Exclusive possession of the demised premise

Question 2

A certain term

Answer 2

The term of the lease must be certain. In Lance v Chantler [1944] a lease for the duration of the war was not valid because the period it was granted for was not certain

Question 3

Leases for lives or marriage

Answer 3

Will take effect as a lease for 90 years

Question 4

Street v Mountford [1985]

Answer 4

It was states that the parties could not turn a lease into a licence merely by calling a licence. Whether it was a lease or licence depended on whether exclusive possession was granted. In this case a lease was found even though the words licensor and licensee was used

Question 5

Board and lodging

Answer 5

A genuine lodger does not have exclusive possession and is not a tenant. Bedsits were provided with a resident housekeeper who cleaned rooms and changed bedsheets this took away exclusive possession

Question 6

Periodic tenancies

Answer 6

When tenancies are granted for a period of time and this automatically renews. The notice period may be expressed or implied

Question 7

Tenancies at will

Answer 7

Where a tenant occupies land with the consent of the owner on the basis that either party can bring the tenancy to an end at any time

Question 8

Tenancies at sufferance

Answer 8

Where a tenant occupied land without the consent of the landlord

Question 9

Tenancies by estoppel

Answer 9

If a person purports to grant a lease of land in which they have no estate they are estopped from denying its existence

Question 10

Legal and equitable leases

Answer 10

If a lease for more than 3 years is created without a deed it is void by s52 LPA 1925

Question 11

The creation of equitable leases

Answer 11

A lease which is invalid for want of a deed as a contract to create a lease in the future
Equity may grant other remedies in particular specific performance
If the tenant is entitled to specific performance then in the eyes of equity they already have it

Question 12

Conflict between law and equity

Answer 12

In the event of any dispute equity prevails under the Judicature Acts 1873-1875

Question 13

Differences between a legal lease and an equitable lease

Answer 13

An equitable lease depends on the discretionary remedy of specific performance
A landlord who grants and equitable lease is entitled to the usual covenants
It does not convert certain rights into easements
An equitable lease does not result in privity of estate

Question 14

Privity of contract

Answer 14

The original tenant and original landlord have privity of contract. If either side breaks any contractual term they may be sued by the other

Question 15

The original landlord and assignees of the tenant. At common law the burden of covenants are attached to the leasehold estate

Answer 15

Spencer’s case [1583]
The lease is legal
The assignment of the lease is by deed
There is privity of estate between the landlord and the tenant
The covenant touches and concerns the land that is leased

Question 16

Remedies after assignment

Answer 16

An implied right of indemnity may be claimed in two ways
By virtue of a quasi contractual right of indemnification if one party suffers loss through another party’s action
By virtue of s77 LPA 1925. A chain of indemnities can arise

Question 17

The original tenant and an assignee of the reversion

Answer 17

The reversioner is able to take the benefit of the tenants obligations by virtue of s141 LPA 1925
Likewise the reversioner suffers the burden of the landlords obligations by virtue of s142 LPA 1925

Question 18

Overriding leases

Answer 18

S19 Landlord and Tenants (Covenants) Act 1995 also applies to pre 1996 leases. It gives the former tenant control over the defaulting tenant. They can sue the defaulting tenant in the future for any outstanding rent

Question 19

The Landlord and Tenant (Covenants) Act 1995

Answer 19

The benefit and burden of all landlord and tenant covenants will automatically pass to an assignee of the lease or reversion unless the covenant is expressed to be personal

Question 20

Authorised guarantee agreements

Answer 20

Under Landlord and Tenant (Covenants) Act 1995 the landlord can demand that the assigning tenant guarantees the performance of the covenants by the assignee. Where consent to assign is needed from the landlord they can make an authorise guarantee a requirement

Question 21

Landlords release from covenants on assignment of reversion

Answer 21

There is no provision in LT(C)A 1995 for landlords to be released automatically from their covenants but they can serve notice on the tenant applying to be released

Question 22

Commonhold

Answer 22

Introduced by Commonhold and Leasehold Reform Act 2002. Each property owner form part of the Commonhold association and the Commonhold association owns the common area

Question 23

Advantages and disadvantages of Commonhold

Answer 23

The advantage is it deals with the issues of ownership and maintenance of the common parts. Each owner is able to enforce the covenants. There is no lease so there is no wasting asset and there is no forfeiture
Take up has been minimal as it is not well known and people are reluctant to move away from the tried and tested