Leases And Licenses Flashcards
Sections 1(3) and 1(6) , Landlord and Tenant Act 1988
Section 1(3)
If the tenant asks for consent in writing, the landlord must give or refuse consent in writing and must do this in a reasonable time.
Section 1(6)
It is for the landlord to prove that:
A refusal of consent was reasonable;
Consent was given or withheld in a reasonable time;
If conditions were imposed, that they were reasonable.
Section 54(2) , Law of Property Act 1925
A lease not exceeding three years can be legal without any formalities (even oral) if;
In possession – The tenant must be given an immediate right of possession.
Best rent – The market rent.
No fine – No premium payable.
Section 19(1A) , Landlord and Tenant Act 1927 (added by Section 22 , Landlord and Tenant (Covenants) Act 1995)
Landlord and tenant of a non-residential lease may agree in the lease what circumstances will justify the landlord in withholding consent.
Section 5 , Landlord and Tenant (Covenants) Act 1995
The tenant on assigning the lease is released from his covenants and ceases to be entitled to the benefit of the landlord covenants.
Landlord may require the tenant to enter into an authorised guarantee agreement (AGA) (s. 16) guaranteeing that the incoming tenant will perform the covenants.
Eg.
Landlord gives consent to the assignment from T1 to T2. He can require T1 to enter an AGA under which T1 guarantees T2’s liabilities under the lease. When T2 assigns to T3, the landlord may require T2 to enter into an AGA, but when the assignment is complete, T1’s liability ends.
Section 6 , Landlord and Tenant (Covenants) Act 1995
The landlord may, on selling the freehold reversion, be released from liability on his covenants.
Section 19(1) , Landlord and Tenant Act 1927
The landlord must not withhold consent unreasonably.
Street v Mountford 1985
X given exclusive possession of furnished rooms at a rent.
She had signed statement that this was not intended to give rise to a tenancy under the Rent Acts.
It was held that in fact she did have a tenancy.
PRINCIPLE
1. exclusive possession;
2. for a fixed or periodic term;
3. at a rent.
Antoniades v Villiers 1988
Couple entered into two separate license agreements (Therefore not exclusive).
Held: The arrangement counted as a lease.
Pivotal point was use of a double bed, not two singles.
Couple enjoyed exclusive tenancy as a couple.
Walsh v Lonsdale 1882
Deference a between legal and equitable leases
Lease created but not by deed.
Held: Creation of a lease not in deed can result in valid equitable lease.
Legal leases:
Created by deed except for leases not exceeding three years
Not granted at the discretion of the court
Tenant under a legal lease can claim implied easements under section 62(1) , LPA 1925
Equitable leases
Created by agreement which satisfies section 2 , Law of Property (Miscellaneous Provisions) Act 1989
Granted at the discretion of the court – equitable remedies are discretionary
Tenant under an equitable lease cannot claim implied easements under section 62(1) , LPA 1925 – equitable lease is not a conveyance
Thomas v Hayward 1869
The landlord of a public house covenanted that he would not open another ‘beer or spirit house’ within half a mile of the premises.
Held: This did not bind an assignee tenant as it did not refer to anything to be done or not done on the premises.
COVENANT MUST TOUCH AND CONCERN THE LAND
International Drilling Fluids Ltd v Louisville Investments Ltd 1986
PRINCIPLE
Landlord entitled to refuse lease due to undesirable tenant or activity, but only landlord/tenant relationship applies, a personal issue does not suffice.
