leases, licences and landlords

Question 1

what are the different types of licence?

Answer 1

bare- single permission, no consideration or charge, express or implied, no formalities- wood v leadbitter 1845
licence coupled with interest- linked to proprietary interest
contractual- contractually created permission, can be oral or in writing, express or implied

Question 2

what are some key differences between a lease and licence to occupy?

Answer 2

lease creates a property interest, whereas, licence only creates personal contractual rights
lease potentially binding on third parties, licence isn’t
lease often benefits from statutory protection, whereas licence won’t usually

Question 3

what are the key types of lease?

Answer 3

a. a fixed term lease
- continues until expiry
- cannot be brought to an earlier end unless a term permits this or tenant breaches the terms of the lease
b. periodic tenancies
- continues period to period can be created
expressly
by statute
implied by conduct
c. non-proprietary lease

Question 3

what are the essential requirements of a lease?

Answer 3

1. exclusive possession
2. determinate term
3. rent

Question 3

what are some examples of cases that illustrate no intention to grant exclusive possession?

Answer 3

hustler v rudely 1996
- provision of services by the landlord which requires the landlord to exercise unrestricted access

westminster city council v Clarke 1992
- the nature of the accommodation is such that the landlord retains control

Question 4

what is a case that disputed a sham term?

Answer 4

antoniades v villies 1990

Question 5

what unities must be present for a joint tenancy to arise?

Answer 5

1. possession
2. interest
3. title
4. time

Question 6

what are some examples of the certain duration requirement of a lease?

Answer 6

fixed term tenancy
- provided that the max duration is certain at the outset, possible to make a lease end as a result of an event that is uncertain

periodic tenancy
- uncertainty of term avoided as its within the power of both the LL and T to terminate by giving notice
- runs period to period, if no notice given, term continues

discontinuous term
- where the lease grants EP for periods which aren’t consecutive

a certain duration
- leases granted for life or until marriage, converted to 90 year leases

Question 7

what case proved that you can have a lease without payment of rent?

Answer 7

Ashburn v Arnold

Question 8

what are the formalities of a legal lease?

Answer 8

s52(1) LPA- requires that a deed is used to create a legal leasehold estate
- to be a deed , a document must comply with s1 LP(MP)A 1989
s54(2)- important exception- creation of interests by parol :
- leases for a term of less than 3 years
- at a market rent
- that take effect in possession
- not for a fine or premium

Question 9

what is the parol rule?

Answer 9

Parol lease- short lease made orally
Parol leases are the exception to the general rule that leases are not legally enforceable unless they are made by deed (Law of Property Act 1925 s 54(2)

Question 10

what is a deed?

Answer 10

signed witnessed and sealed requirement
s52 LPA

Question 11

what are the formalities of a periodic tenancy?

Answer 11

s54(2) exception applies as a term for less than 3 years includes a monthly (or other) periodic tenancy

Question 12

what is an equitable lease and what are the conditions for an equitable lease to arise?

Answer 12

An agreement for the grant of an interest in land on terms that correspond to a legal lease but do not comply with the necessary formal requirements of a legal lease
1. there is a valid contract for the grant fo a lease complying with s2 LPMPA 1989; and
2. the remedy of specific performance is available

Question 13

what is the difference between a legal and equitable lease?

Answer 13

legal interests bind all third parties, whereas equitable interests would only bind third parties who were not bona fide purchasers for value of a legal estate

Question 14

what are some circumstances in which an equitable lease can arise?

Answer 14

1. where there is an enforceable agreement to grant a lease, but there is no executed deed
2. where a deed has been attempted but the legal formalities haven’t been met
3. where the registration requirements of LRA 2002 haven’t been met

Question 15

what are the main methods of determination of leases?

Answer 15

• effluxion of time/ expiry
• by notice
• by forfeiture
• surrender
• merger

Question 16

effluxion of time key points

Answer 16

• at common law, a FT tenancy comes to an end when the term expires
• many FT tenancies will engage statutory provisions that provide ‘security of tenure’
• joint periodic tenancy- ends if 1 party gives notice- Hammersmith LBC v Monk 1992
• possible for a escape clause to end the lease before the term expires

Question 17

what is the requirement of the form of notice given when terminating a lease?

Answer 17

no general requirement- usually the express terms would require this protection from eviction a 1977

Question 18

what is the requirement for the service of notice?

Answer 18

statutory provisions regarding the service of notices (s196 LPA) don’t apply unless the parties have expressly agreed this

Question 19

by forfeiture key points

Answer 19

• LL becomes entitled to ‘re-take’ the property and put at end to the lease prematurely
• applies to FT and periodic leases
• forfeiture clause will give the LL right to re-enter and rights are proprietary and so are enforceable against third parties

Question 20

surrender key points

Answer 20

• arrangement where the tenant gives back the leasehold estate to the landlord, requires the consent of both parties
• the leasehold estate is absorbed by the landlords reversionary estate
• surrender may be express or implied

Question 21

merger key points

Answer 21

an equitable lease will only be recognised if there’s an enforceable agreement to grant a lease

Question 22

registration requirements of a lease longer than 7 years

Answer 22

• requires registry of its own title number at land registry
• s27(2)(b) and S4(c) LRA
• until registered, equitable only

Question 23

registration requirements of a lease for shorter than 7 years

Answer 23

• doesn’t require registration
• schedule 3, para 1 LRA or protect with s32 notice

Question 24

registration requirements of an equitable lease over 3 years

Answer 24

• protect with s32 LRA notice or schedule 3 para 2 LRA

Question 25

registration requirements of unusual types of leases

Answer 25

• leases that are to have effect in the future- any that are to take effect in possession 3 months after the grant requires registration- s27 2bii LRA
• a discontinuous lease of any duration also requires registration s272biii LRA

Question 26

what is a covenant?

Answer 26

a promise contained in a deed

Question 27

what is a leasehold covenant?

Answer 27

term to describe the promises made by the LL and T where there is no deed

Question 28

what are some common tenant covenants?

Answer 28

• pay the rent
• pay rates and taxes
• keep premises in repair

Question 29

what are some common landlord covenants?

Answer 29

• quiet enjoyment (implied unless expressly included)- Owen v Gadd 1956
• not to derogate from the grant- Grosvenor hotel v Hamilton 1894
• repair and maintenance of common parts