What is the formal name for a leasehold?
term of years absolute
How is a leasehold created in the most general sense?
one person with an estate in land grants another the temporary right to exclusive use and enjoyment of it
How is a license distinguised from a lease?
license gives a personal right of occupation, but does not confer a legal estate in land
(Where is ‘term of years absolute’ defined?)
s205(1)(xxvii) LPA 1925)
What are the two basic requirements for a lease?
- certainty of term
- exclusive possession
How can certainty of term be shown?
demonstrating either
- fixed term
- periodic term
What is a fixed term lease?
- the maximum duration of the arrangement is known at the outset
What case sets out the need for certainty of term?
Prudential Assurance v London Residuary Body
What is a periodic tenancy?
- length of term not fixed in advance
- runs from period to period (weekly, monthly, quarterly, yearly etc)
- automatically renewed until either party serves a notice to quit upon the other
How can a periodic term tenancy be created?
- expressly: by written agreement
- impliedly: no written agreement but the certain term arises simply by the payment and acceptance of rent on a periodic basis.
Give an example of a case where a periodic tenancy was implied.
Prudential Assurance v London Residuary Body
How is the period calculated in periodic tenancies?
- by the period by reference to which the rent is calculated
- not the intervals by which the rent is payable
- eg £1000 per year in 4 quarterly payments; one period is one year not one quarter.
What case evidences how to calculate the term of a periodic tenancy?
Ladies’ Hosiery and Underwear v Parker
What is a tenancy at will?
- where the tenant occupies land with the owner’s permission on the understanding that either party can end the tenancy at any time
- gives tenure between landlord and tenant but no estate
What is a tenancy at sufferance?
- Where a tenant holds over (remains in possession without the landlord’s consent after the lease has ended)
- original entry was lawful so therefore no trespass
- if they start paying periodic rent and it is accepted a common law periodic tenancy is created
What happens if a tenancy for life is granted?
- automatically converted into tenany for fixed term of 90 years
What does ‘exclusive possession’ mean?
the tenant has the right to exclude all others from the property, including the landlord.
What are the formalities for creating a lease of more than 7 years?
- created by deed: s52 LPA 1925
- substantively registered: s27(2)(b)(i) LRA 2002
What are the formalities for creating a lease of more than 3 but less than 7 years?
- created by deed: s52 LPA 1925
- do not need to be registered
How do leases of less than 7 years relate to a new owner of the freehold estate?
- unregistered interests which override registered dispositions
- therefore will bind new estate owners
What kind of leases do not need to be in writing? What gives the authority for this?
- s52(2) LPA 1925
- short fixed term leases (3 years or less)
- express periodic leases (where there is a tenancy agreement)
- implied periodic leases
What are the possible outcomes if someone fails to comply with the formalities of creating a lease?
either
- possible periodic tenancy
- possible equitable lease
How might a possible periodic tenancy come into being? Give a case as an example.
- if the formalities for creating a lease have not been met and
- if the tenant enters into possession and pays rent by reference to a period
- Prudential Assurance v London Residuary Body
How might an equitable lease come into being?
- if the formalities for creating a lease have not been met and a contract to create a lease exists that complies with s2 LP(MP)A 1989
- if there has been a mere agreement to grant a lease (this agreement, as a land contract, must comply with s2 LP(MP)A 1989
- if the person granting the equitable lease only holds an equitable state themselves; can’t grant more than they have.
