Leases & Licences Flashcards
What are the two questions that must be asked when dealing with a lease problem question?
The content question (what is the content of the rule?)
The acquisition question (has the right been validly created?)
What are the requirements for a lease (CONTENT)?
Street v Mountford
There must be grant of exclusive possession of the property for a fixed or periodic term for rent
Is the rent requirement always necessary for a lease to exist?
No, Ashburn Anstalt v Arnold
What does the case of Aslan v Murphy tell us?
If a person such as the landlord retains the right to enter the property then this does not mean the exclusive possession element will fail, there can still be a lease
What is legal periodic tenancy?
Prudential Assurance Co Ltd v London Residuary Body
Where an original agreement is void but tenants have moved in and paid rent, the agreement becomes a legal periodic tenancy. This can only occur where the agreement is terminable by one months notice
What does s149(6) Law of Property Act 1925 do and what was the purpose of this?
Converts a lease of an uncertain term into a 90 year lease, this is because prior to this the common law made an uncertain term a life estate, created too many interests in the land and LPA 1925 wanted to limit the amounts of interest
What does the case of Berrisford v Mexfield tell us?
Where a tenancy agreement does not have a certain term, it is not void but creates a tenancy in common law which under s149(6) LPA 1925 becomes a 90 year lease
When will s149(6) not apply?
Southward Housing v Walker
Where it is contrary to the parties intention, i.e. positive intent through words or statement in PQ
What is a Bruton tenancy?
Bruton v London and Quadrant Housing Trust
Even where language used is typically associated with a different type of agreement (most likely a licence) a lease can still be created if it exhibits the essential characteristics even if it does not give a proprietary interest in land
What are the three formality rules that must be complied with in order for a lease to be created? (ACQUISITION)
Contract, Deed and Registration
When must a contract be used?
s2(1) Law of Property Act (Miscellaneous Provisions) 1989, a contract for any disposition must be in writing
UNLESS
s2(5)(a) it is a lease mentioned in s54(2) LPA 1925, i.e. shorter than 3 years
What are the rules on a deed?
-s52(1) Law of Property Act 1925, all conveyances of land or any interest there in are void unless made by deed
-Deed not need for a lease less than three years under s54(2)
-s1 LPA (MP) 1989, a deed will not be a deed unless expressly stated on the face and is validly executed
-However, if a deed is not created but a contract exists, a person can get an equitable right pursuant to Walsh v Lonsdale
What is the difference between a legal right and an equitable right?
-Equitable lease will arise where there is no deed (incomplete)
-No claim over third parties if you only have an equitable right
How would a person with an equitable lease try to stop a third party from having their property?
Land Registration Act 2002
-Claimant would say interest takes priority due to s28, other person would try to argue s29 applies to them
-C would then rely on schedule 3 para 1 if the lease is less than 7 years
When will schedule 3 paragraph 1 not work in protecting a lease?
-When it is a period of more than 7 years, therefore if given a 90 year lease under s149(6) LPA 1925 this would not work
-Where the person only has an equitable lease, City PBS v Miller, does not include agreements with a merely contractual effect
