What Is A Lease?

Question 1

What is a Lease?

Answer 1

also known as term of years or demise. A Lease is a legal estate in land according to section 1(1) LPA 1925.

Question 2

How does a Lease differ from a Licence?

Answer 2

Lease is a proprietary right, a tenant has significant statutory protection. A Licence is a personal right. e.g. a lodger, no statutory protection for them.
A tenant cannot be evicted without a court order, a licensee can be evicted without one.

Question 3

Do Leases exist in equity?

Answer 3

Yes. A lease that exists for 5 years by contract without a deed is a equitable lease.

Question 4

Which statute defines a lease?

Answer 4

section 205 of LPA 1925- term of years for a lease relates to any fixed period of time e.g. 6 months, 1 year and 99 years.

Question 5

What are the 3 essential requirements of a lease? What case governs this? DEC

Answer 5

Street v Mountford

1. Duration must be the duration permitted for a leasehold estate
2. Exclusive Possession
3. Correct formalities

Question 6

Explain each essential requirement, what do they each mean? DEC. What is the defining feature of a lease?

Answer 6

1. Duration must be fixed or periodic, must be an identifiable period of time.
2. Exclusive possession is the defining feature of a lease. This is what distinguishes it from a licence. You need possession, right to exclude the whole world including the landlord. No exclusive possession means no tenancy.
3. Correct formalities, lease must be in writing, be a contract.

Question 7

What is a legal lease?

Answer 7

A lease that is over 7 years that is created by deed, meaning it has a separate title number as a leasehold.

Question 8

What is a equitable lease? Are they overriding? Cite the Act

Answer 8

A lease that is only in writing and does not have a deed. Equitable leases are overriding when there is a beneficial interest in land including actual occupation under schedule 3 para 2 Land Registration Act 2002

Question 9

What is the principle from Street v Mountford?

Answer 9

If a transaction fulfills all 3 requirements of a lease. It is a lease. A landlord cannot say a licence is a lease. The court looks at the de facto effect of the agreement in terms of the way it is written and the provision of the agreement. The HL understands that there is a power imbalance between a tenant and landlord. Tenant is in a weaker position, therefore court seeks to protect them.

Question 10

What 3 things distinguish a lease from a licence?

Answer 10

1. Leases are property rights which are sold, whereas licences are personal rights. They can be given away and left by will. Licences can’t.
2. Leases bind third party purchasers of the freehold estate. Licences don’t.
3. A lease can be protected by statute, licences no statue protection