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leases Flashcards

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1
Q

how are leases developed?

A

Leases developed outside the feudal structure of estates.
-which makes some sense what ur doing -going into contract to hire out land youre paying money higher fee and in return land being hired to you

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2
Q

what are leases treated as?

A

Leases were originally very much part of the law of contract and treated as personalty.

creates personal prop rights

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3
Q

what has happened since lpa?

A

Since the LPA 1925, leases have been incorporated into conventional land law, S.1 LPA recognises the lease (‘ term of years absolute) as one of main legal estates.

treates as one of two main estates- leasehold and freehold

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4
Q

what is a leasehold estate aka?

A

term of years absolute but now referred to as lease or tenancy

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5
Q

leasehold compared to freehold

A

leasehold endures smaller slice of time ,fixed and certain duration

-possesory rights enjoyed by holder of leasehold estate (tenant ) more lim to freehold- leasehold ahs limtiations by superior estate holder- land lord

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6
Q

what are leases?

A

Leases are now contracts whereby land is hired out in return for some rent paid .

contract of letting

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7
Q

what is teh leaseholder given?

A

The leaseholder is given ‘exclusive possession’ of the land for a given contractual period, in return for the leaseholder paying his landlord rent.

certainty of term
exclusive possion
rent

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8
Q

what do leases have mix of?

A

A lease is therefore contract of letting, lease are therefore ‘chattels-real’.
A lease is therefore a hybrid form of personal and real property. It is now a well established form of title/estate in land.

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9
Q

who is the freeholder and leaseholder?

A

Typically a landlord will be a ‘freeholder’ of land who has granted a lease to another – a ‘leaseholder’.

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10
Q

what does the landlord have what does the leaseholder have?

A

The landlord has an interest in ‘reversion’ and collects his rent.

-once lease granted he has given away exclusive possession by the lease for the period of lease in return for the rent , land lord has interest in reversion – he receives rent and leaseholder has

The leaseholder has an interest ‘in possession’.

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11
Q

different terms?

A

The terms, ‘landlord’ and ‘tenant’, ‘lessor’/ ‘lessee’, ‘demise’, ‘demisor’ and ‘demisee’ all refer to the landlord/tenant relationship.

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12
Q

Context of Leases- what are the 4 contexts of leases?

A

Private Residential Sector
Public Residential Sector
Commercial/Business Leases
Agricultural Leases

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13
Q

what happens in each context?

A

In each sector leases are frequently regulated by Statute. As leaseholders have a form of title which will in time run out, as the contract runs its course, Parliament has given a lot of statutory protection to leaseholders, typically:

LEASEHOLDERS= STAT PROTECTION BY PARL - as time runs out

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14
Q

what is security of tenure?

A

Security of Tenure (i.e rights to remain in the property after the contractual term has expired – possession often only being recoverable by the landlord by way of court order, only on proof of certain statutory e.g grounds/procedural requirements);

e.g dont pay rent
cts will always look at unfairness

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15
Q

what are the other forms of protection?

A

Compensation rights.

Certain rent protection.

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16
Q

what is the 1st main context?

A

The main statutory codes in each sector of leasehold law are:

(i) Private Rented Sector
Rent Act 1977 ‘protected tenancy scheme’ (old private sector lettings entered into pre-15.1.89) and more typically the Housing Act 1988 (as amended by Housing Act 1996 (‘assured’ and ‘assured shorthold tenancy’ schemes).

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17
Q

what is the 2nd main context?

A

(ii) Public Residential Sector
Housing Act 1985 ‘ secure tenancy scheme’. Offers statutory protection/ security of tenure and other rights (e.g the right to buy) to council tenants etc.

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18
Q

what is the 3rd main context?

A

(iii) Agricultural Tenancies

Agricultural Holdings Act 1986 and Agricultural Tenancies Act 1995.

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19
Q

what is the 4th main context?

A

(iv) Commercial/Business Leases
Landlord and Tenant Act 1954 Part II. Offers security of tenure and rights of lease renewal and compensation to business tenants.

-

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20
Q

e.g of no.4?

A

idea is e.g set up restaurant business 5 yr lease takes 3 yrs to get business goig customers start comin yr 5 landlord says want prop – not fair start again wheres the good will- so economic reg protects small businesse- when 5 yr lease runs out unless uve contracted out the act applies and ccarry on on stat of tenancy e.g claim for landlord new lease landlord can oppose it but only get possession on certain grounds- without those certai grounds landlord wont get possession- u can renew and renewal- case for renewal gets stronhe

21
Q

other acts that exist for protection?

A

(v) Many other acts also exist, e.g the Protection from Eviction Act 1977 (as amended) which protects most residential tenants and licensees from unlawful harassment or illegal eviction; or e.g the Leasehold Reform Act 1967 which allows tenants of long residential leases to ‘enfranchise’ i.e compulsorily acquire the landlords title for a pre set figure. Similar provisions exist for private tenants in blocks of flats who wish to become their own landlord, e.g see, Leasehold Reform Housing and Urban Development Act 1993.

22
Q

Types of Leases and Tenancies?

A 
Fixed term tenancy 
Periodic tenancy
Tenancy at will
Tenancy at sufferance
Tenancy by estoppel
23
Q

what is a fixed term?

A

A Fixed term lease is one for a fixed period, e.g 6 months, 1 year, 5 years, 10 years or say 99 years. Any number can be used. At common law, when the lease period runs out, the tenant becomes a trespasser, unless Statute offers extra protection/security of tenure.

-lease will not term until end of fixed term, subjetc to presence of break clauses allowing for early term, or breach of cov which could lead to term of the lease by forfeiture

24
Q

what is a Periodic tenancy?

A

granted intitally for certain period e.g weekly, monthly, yearly, with the period ongoing until lease brough tto end , either by notice or breach of cov - notice same time as lease so notice 1 month lease 1 month hw yearly requires 6 months notice

peropdic tenancy over dwelling house= min of fpir weks- protection from eviction act 1997

notices can also be spec by parties themselves

periodic ten may be implied when person takes possesion and pays rent by reference to a period (certaintyu of term)

25
Q

what is a Tenancy at will?

A

personal rels bte parties wherby perso allowed to take possesion of prop as tenant but the agreemetn is such that either party can terminante the tenancy at will- should the tenant start paying rent whilst in possesion , a periodic tenancy may be implied, but only where there is sufficeient inteion between parties (dont really examine this)

26
Q

what is a Tenancy at sufferance?

A

tenant remains in posseion once his lease has expired with neither the consent nor dissent of the landlord . if and when land consents a new tenancy wil be created hw meantion possion of prop wont amount to a trespass as the intial possesion was lawful

27
Q

what is a Tenancy by estoppel?

A

landlord rep he will grant a lease and the tenant has quite reasonably relied upon this rep to his detriment

estops each party to the lease from denying its binding nature as between them.

28
Q

Essentials of a valid legal lease?

A

Generally leases in excess of 3 years, to be ‘legal leases’ must be prepared by Deed (S.52 LPA) (formal document signed, witnessed and delivered, S.1 L.P.(MP)A 1989.

-deed must comply with s1

Legal Leases must be by Deed, S.52 LPA
(S.1 LP(MP)A 1989).

S.54(2) LPA 1925.

29
Q

Leases which fall within s.54(2) LPA are within the ‘short lease exception’ and will be valid legal leases if:

A

The lease does not exceed three years (includes periodic tenancies)
Is at a market rent (best rent)
Without a fine or premium being paid
Takes effect in possession

30
Q

what can it be difficult to tell?

A

Sometimes it can be difficult to tell the difference between short legal leases (within S.54(2))(particularly say monthly/weekly periodic tenancies) and monthly periodic contractual licences.

31
Q

why are licences different?

A

Licences are not leases. They are personal/purely contractual rights of occupation. Licences are generally not afforded statutory protection/security of tenure etc where lease agreements are i.e is generally a lot easier to regain possession against a licensee than a tenant/lessee.

Leases create property rights- elases combine purchaser s

32
Q

ESSENTIAL CHARACTERISTICS OF LEASE:

A

During the 1970’s and 1980’s landlord’s tried to evade the statutory protection given to residential occupiers by granting them licences as opposed to leases. Eventually the legitimacy of this evasive ‘licence’ device was tested in the House of Lords, in the leading case of :
Street v Mountford [1985]

33
Q

what did lord templan say in street v mountford?

A

exposing a contractual licence as a sham/pretence designed to circumvent the Rent Acts, stated that where an occupation agreement conferred:

3 essential charactersitcs of a lease to exist

  • certainty of term
  • exclusive possesion
  • rent
34
Q

what is certainty of term?

A
  • fixed certain max duration- lace v chantler -max known when lease granted - lease could end earlier e.g presence of breack clause
  • a certain date - where nothign speci-assumed lease commences upon the tenant taking posses- start date can be delayed up to 21 yrs - s149 lpa 1925Lace v Chantler [1944] KB
    Prudential Assurance v London Residuary Body [1992] HL 2 AC.
    Berrisford v Mexfield Housing
35
Q

what if term uncetain?

A

cts imply periodic tenancy wehre t has taken possesion and started paying rent by reference to period - prudential case - recently they treat as term for life

36
Q

what is meant by exclusive possesion?

A

exclude all others from prop including landlord- key factor do disting btw lease and licence without it wouldnt be lease

37
Q

what is meant by rent?

A

established tyhat rent is not essential to find ing of lease- term is absolute = lease can exist whether or not at a rent

38
Q

what are they subject to?

A

Then, subject to certain exceptions (i.e service occupancy, vendor/purchaser occupation arrangements, lodging arrangements, and where there was no intention to create a landlord and tenant relationship), a lease/tenancy would result.

39
Q

what did you have to look at?

A

In cases where a licence or other occupation agreement was under scrutiny, one had to look at the ‘effect of the agreement’, to see whether exclusive possession for a term at a rent had been conferred on the occupier. If so, the occupation agreement or licence was in fact a lease. The ‘label’ of the agreement was irrelevant, it was a test of substance over form

40
Q

what if lease found?

A

If a lease was found, then the lease would attract statutory protection where applicable, see Street, (above). In short, the judges were fed up with landlords using sham licence devices as a means of denying to tenants the Rent Act/other statutory protection parliament had sought to give them.

41
Q

Lease/ licence distinction in the commercial setting’:?

A 
Esso v Fumegrange (1986)
Dellneed v Chin (1986) 53 P & CR 172
National Car Parks Ltd v Trinity Developments [2001] EWCA Civ 1686
‘Lodgers as licensees’
Marchant v Charters (1977)
42
Q

‘Street applied: Sham licences exposed’?

A

Aslan v Murphy (1990)
Duke v Wynn (1990)
Nicolau v Pitt (1989) 21 EG 71
Hajiloucas v Crean [1988] 1 WLR 779
Family Housing Association v Jones [1990] 1 WLR 779
Westminster City Council v Clarke [1992] 2 AC
Dresden Estates v Collinson (1987) 2 EGLR

43
Q

granting lease?

A

general rule: person granting lease must be capable but can happen where ‘Landlord granting a lease without himself having title’

Bruton v London and Quadrant Housing Trust (1990) 3 WLR 150; - lease was recog as created even though grantor had no proprietat estate out of which to grant lease
Kay v Lambeth (2006) CA; Islington LBC v Green (2005) CA

44
Q

multiple occ aggreements?

A

‘Co-owned leases/multiple occupation agreements’- where more than one person occupying prop on basis of lease, occupency must either be on the basis of each having sep licences or having joint tenancy between themselves-both exclusive posses as whole and must share four entites as a whole

AG Securities v Vaughan [1990] 1 AC
Antoniades v Villiers [1990] 1 AC

45
Q

no intention to create lease?

A 
‘No intention to create a lease’
Heslop v Burns [1974] 1 WLR 
Cobb v Lane [1952] 1 All.E.R
Marcroft Wagons v Smith [1951] 2 KB
Ward v Warnke [1990] 22 HLR 496
‘Service Occupancy’
Norris v Checksfield [1991] 1 WLR
46
Q

what are eq leases? exisitng like legal

A

Equitable Leases/Contracts for Leases’:
S.2 LP(MP)A 1989
Walsh v Lonsdale (1882) 21 Ch 1.

s.53 1c in writing and signed by person making disposal toa ssignor

47
Q

what about estate contract?

A

‘Estate Contract’ protectable by Notice in Registered land or C(iv) Land Charge in Unregistered land.

48
Q

what about further in reg land?

A

Further, in Registered land an equitable lease can override, where the tenant is in patent actual occupation, and bind a purchaser of the landlord’s reversion.

Land law (10 decks)

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