Leases & Licences: Security of Tenure & Formalities Flashcards
What is the importance of security of tenure in land law?
Security of tenure refers to the protections afforded by Parliament to tenants, ensuring many can remain in their premises even after a tenancy has legally ended at common law, underlining the legislative intent to safeguard occupiers’ rights
What acts protect private sector residential tenancies?
The Rent Act 1977 and the Housing Act 1988 protect residential tenancies, setting grounds for eviction and applying different rules based on tenancy start dates, with stricter rent controls under the Rent Act for tenancies before 15 January 1989.
How do eviction grounds differ under the Rent Act 1977 and Housing Act 1988?
Eviction is only permissible on specific grounds within these Acts.
It’s easier for landlords to evict under the Housing Act 1988 than under the Rent Act 1977, which applies to tenancies started before 15 January 1989.
How are business tenants protected under law?
Business tenants are protected under Part II of the Landlord and Tenant Act 1954, which:-
- prohibits automatic termination of fixed-term tenancies and
- requires adherence to the Act’s provisions for tenancy termination, potentially granting tenants rights to a new tenancy or compensation.
What formalities must be met for a lease to be considered legal under the LPA 1925?
A leasehold estate is capable of being legal if it meets the following requirements:
1. Must be for a term of years absolute (s. 1(1)(b) LPA 1925)
2. Must be created by deed (s 52(1) LPA 1925)
3. a valid deed must be in signed writing, indicating on its face that it is intended to be a deed, and must be witnessed and delivered, applying modern formalities to the creation of legal leases (s 1 LP(MP)A 1989).
Parol Lease Exception: However, s 54(2) provides an exception, allowing for the creation of a parol lease without a deed for
1. terms not exceeding three years,
2. at the best rent obtainable without a premium.
3. taking effect in possession immediately
This exception negates the need for a formal deed, enabling short-term legal leases to be created in writing or orally.
How does Walsh v Lonsdale illustrate the concept of an equitable lease?
Walsh v Lonsdale established that even if a lease’s formalities under law are not met, it may still be valid in equity if the parties agreed on terms and possession was granted.
This case demonstrates that a tenant can be bound by agreed terms and obligations, like paying rent in advance, even without a formal deed, under the principle that equity treats as done that which ought to be done.
What distinguishes a legal lease from an equitable lease?
A legal lease requires compliance with formalities such as terms set by the LPA 1925 and LP(MP)A 1989, including deeds and registration for certain durations.
An equitable lease, however, can exist based on agreed terms and possession, even without formal documentation, under principles seen in Walsh v Lonsdale.
When is a lease considered a registrable disposition under ths 27 of the LRA 2002?
Under the Land Registration Act 2002, s 27, a lease for a term of more than seven years is classified as a registrable disposition, requiring substantive registration and notice against the freehold title for legal completion.
What are the requirements for a valid deed under s 1 LP(MP)A 1989?
The Law of Property (Miscellaneous Provisions) Act 1989, s 1, mandates that a deed must:-
1. clearly state its intention
2. be signed
3. witnessed and
4. delivered
to be valid, underlining the modern criteria for formalizing legal documents in property transactions.
What are the key requirements under section 2 of the LP(MP)A 1989 for land contracts?
- Must be in writing.
- Incorporate all terms expressly agreed in one document, or each if contracts are exchanged.
- Must be signed by or on behalf of each party.
- Exceptions: short leases under LPA 1925, s 54(2), public auction contracts, certain financial contracts.