What is a lease?
defined in the LPA 1925 as an estate in the land for a term of ‘years absolute’ [s.1(1)]
- there can be legal or equitable
Tenancy fees act 2019
Payments allowed:
- rent
- utilities
- holding deposit [refundable]
- tenancy deposit
conditions of a lease ?
STATUTORY: terms of years absolute
COMMON LAW: Set out on Street v Mountford 1985
1. exclusive possession
2. certain time
3. rent
Why would a landlord prefer a licence
they are more protected in a license
what is the test for exclusive possession?
Street v Mountford 1985: substances not intention
1. surrounding circumstances
2. negotiations prior to agreement
3. nature of the property
4. actual mode of occupation
5. exceptions [if you’re friends, charity, mortgagee goes into possession of property]
exclusive possession case: ‘pretence rule’
Antoniades v Villiers 1990- an unmarried couple signed separate agreement for occupation of single bed flat, these agreements gave the landowner certain rights such as the right to nominate another occupier, applied the pretence rule so it was a lease because there was EP
it was held that this was an attempt by the landowner to avoid grant of tenancy by artificially destroying the 4 unities [title, time, interest, possession)
nature of accommodation
a ‘licence agreement’ was held to be a lease, key influence behind the decision was the nature of the accommodation
if owner retained access rights for provision of genuine service its a licence, if not then clause his disregarded at it is a lease
what cases can be used for ‘certain time’
- Berrisford v Mexfield 2011: property rented mouth to mouth. landlord tried to void it as there was no certain time, held it was not void. SC criticised certain time
cases for family arrangement leases
- not normally a tenant
- Errington v Errington and Woods 1952: husband and wife occupied husbands fathers house and were promised after paying off mortgage it could be theirs. there was no lease, the exclusive possession was referable to a relationship other than landlord and tenant
- Cobb v Lane 1952: likewise there was a licence where a brother was allowed into rent-free occupation of a house. No tenancy for brother
what happens when there is multiple occupation
when more than one person is occupying the property on the basis of a lease… must either be on the basis of each having separate leases or having a joint tenancy between themselves
what are the requirements for separate/individual leases?
AG securities Ltd v Vaughan 1990
- 4 people living in a house, different time/rent etc
- landlord could appoint new occupier at any point so no exclusive possession
- if someone died the owner would just replace them
- license
what is the “Bruton Tenancy”
- Bruton 2000
- Bruton tenancy only binds the 2 parties [landlord and tenant] not third parties, does not bind the owner
what are the requirements for a joint tenancy?
for this, certain time and exclusive possession is not enough. also need to have…
1. possession [occupiers are entitle to possess whole property
2. title [same document]
3. time [obtained same time]
4. interest [jointly liable and same rights/obligations]
what are the types of leases?
- fixed term tenancy [fixed term]
- periodic tenancy [initially for a certain period like weekly and then recurring or brought to end]
- tenancy at will [person is allowed to take possession of a property as a tenant due to personal relationship]
- tenancy at sufferance [tenant remains in possession once lease expired with neither consent or dissent of landlord]
- tenancy by estoppel [landlord represents that he will grant lease and tenant relied upon this]
what is the difference between legal leases less than 3 years and legal leases more than 3 years and legal leases more than 7 years
more than 3 years:
- must have a valid land contract in writing, containing all expressly agreed terms and signed by both parties
less than 3 years:
- requires no wiring and may arise orally
more than 7 years:
- made by deed
- must be registered
what happens if the legal leases requirements are not fulfilled
- they are equitable
- equity will always prevail [Walsh v Longsdale 1882]
what are the requirements for an equitable lease
no deed and no registration
what do licences allow you to do
- lets you occupy the land
- leases give tenant an estate in land: Bruton 2000 but a license gives someone permission to enter the land so they are not longer a trespasser: Thomas v Sorrell 1673
what is the criteria from distinguishing a lease from a license
- exclusive possession
- there cannot be any uncertainty
how do you terminate a lease ?
- expiry
- notice to quit
- surrender [landlord and tenant cannot agree that the tenant will give up lease]
- merger [when tenant obtains freehold, freehold and leasehold become merged]
- repudiators breach [landlord breach]
- forfeiture [tenant in breach of a covenant under a lease causes termination]
what are the remedies for a breach?
- specific performance
- injunction
- damages
- contractual remedies which are available to both landlord and tenant
