Lesson 6: Leases Flashcards
What is a lease in land law?
A lease is a legal estate in land that grants a tenant exclusive possession for a fixed or ascertainable period, and it is one of only two legal estates in land, the other being a freehold estate.
What is the difference between a freehold estate and a leasehold estate?
A freehold estate endures for an uncertain length of time, often considered to be forever, while a leasehold estate has a fixed duration.
Can a lease be a legal estate in land?
Yes, a lease can be a legal estate if created in the correct way, depending on the length of the lease term.
What formalities are required to create a legal lease?
A legal lease for more than three years requires a deed, but leases for three years or less may not require formalities and can be created orally (called parole leases), under Section 54 of the Law of Property Act 1925.
What happens if the correct formalities for creating a legal lease are not followed?
If the formalities are not followed, an equitable lease may be recognised if there is a valid contract and the parties have acted properly.
What are the essential characteristics of a lease?
The lease must have a fixed or ascertainable period of possession and must grant exclusive possession to the tenant.
What does ‘exclusive possession’ mean in the context of a lease?
Exclusive possession means that the tenant has control over the property, excluding others, including the landlord, from exercising control.
Can an occupier without exclusive possession be considered a tenant?
No, if the occupier does not have exclusive possession, they are not considered a tenant but rather a licensee.
What is the relationship between a landlord and a tenant in a lease?
A lease is a contract between a landlord and a tenant, creating rights and obligations for both parties during the lease period.
What are lease covenants?
Lease covenants are terms or promises in the lease agreement, often concerning rent payment, property maintenance, and tenant’s rights.
Who is generally responsible for paying rent and maintaining the property in a lease?
The tenant is typically responsible for paying rent and maintaining the property, though the landlord has obligations as well, such as ensuring quiet enjoyment.
What is ‘alienation’ in a lease, and what is its purpose?
Alienation refers to the tenant’s ability to transfer or sublet the lease, and the lease may contain provisions regulating this right.
What is the difference between an assignment of a lease and a sublease?
An assignment transfers the tenant’s full interest in the lease to a third party, while a sublease grants a partial interest to the subtenant.
What is the effect of the Landlord and Tenant Covenants Act 1995 on lease covenants?
The 1995 Act alters how covenants in leases are enforced, with successors becoming liable for the covenants under certain conditions and allowing outgoing tenants to be released from liability.
What is an AGA (Authorised Guarantee Agreement) under the Landlord and Tenant Covenants Act 1995?
An AGA is an agreement where the outgoing tenant guarantees the performance of the lease covenants by the incoming tenant.
What remedies are available to a landlord for breach of covenant by the tenant?
Remedies include suing for unpaid rent, forfeiting the lease, and pursuing damages or specific performance for other breaches.
What remedies can a tenant use for breach of landlord covenants?
A tenant can seek specific performance, an injunction, sue for damages, or use self-help remedies, depending on the breach and desired outcome.
How can a lease come to an end?
A lease can end through the expiration of the term, notice to terminate, surrender by agreement, forfeiture by the landlord, or, in rare cases, due to frustration.
What is forfeiture in the context of a lease?
Forfeiture is the termination of a lease by the landlord, typically due to the tenant’s breach of a lease covenant.
What is the difference between old leases and new leases?
Old leases refer to those granted before 1st January 1996, and new leases refer to those granted on or after that date. The rules for enforcing covenants differ for each.
How do the rules of enforceability differ between old and new leases?
For old leases, privity of contract binds the original parties, whereas new leases allow covenants to pass to successors unless specified as personal.
