Leases and Licenses

Question 1

What is a lease?

Answer 1

An agreement that a tenant may enjoy exclusive possession over a fixed time frame
Also referred to as ‘terms of years absolute’
Lease holder can be called ‘lease’

Question 2

What is the purpose of Street v Mountford?

Answer 2

Distinguishes between lease and license
-Exclaims that where was an intention to create legal relations to the property for a fixed time rate at a rent, it is classified as a lease
-Anything else is a license

Question 3

What does a lease do?

Answer 3

A lease creates legal relations

Question 4

What does the law of property Act 1925 require for a lease?

Answer 4

A fixed timeframe rather than an indefinite one.

Question 5

What does the case of Lace v Chantler have to do with a leases fixed time frame?

Answer 5

The court held that ‘for the duration of the war’ was not a valid timeframe, thus did not constitute as a fixed term.

Question 6

What 3 necessary components did Lord templeman lay down for a tenancy to exist?

Answer 6

1. Exclusive posession - The tenant must have exclusive possession of the property, meaning they have the right to exclude others from the premises, including the landlord himself.
2. There must be a fixed term, a period of time that the tenancy exists for. E.g., Six months, a year etc.
3. Rent, there must be a form of rent paid to the landlord in exchange for the property. The rent can be subjective.

Question 7

The emphasis on actual arrangements rather than technicalities

Answer 7

Rent is not essential to establish a lease thus the courts will look at the actual arrangements made by the tenant and the landlord

Question 8

What does the case of national car parks ltd v trinity dev have in relation to the actual arrangements rather than technicalities?

Answer 8

Rent is not essential to establish a lease as the law of property act 1925 show that leases can exisrt whether or not rent is being paid. So courts consider the agreements made between both parties.

Question 9

What is a license?

Answer 9

Personal right to utilise land that cannot be transffered to anyone else

Question 10

What are the characteristics of a license

Answer 10

• Licenses do not create legal relations thus do not have the benefit of statutory protection like leases.
  -Either party can terminate the license on short notice due to limited formality.