LEASES

Question 1

INTRO

Answer 1

• one of two estates in s.1 LPA that is capable of existing as legal or equitable interest
• either legal or equitable depending on how it is created
• leasehold allows 2+ people to enjoy benefits of owning an estate in the same piece of land at the same time
• can expand to a sublease
• both landlord and tenant have property right to the land tenant owns the lease and landlord owns reversion expectant on lease
• both these rights can be transferred or sold while lease is in existence
• future tenants and landlords can be bound to terms of original lease
• all leases contain covenants can be express or implied or usual
• these covenants can be enforceable to future tenants and landlords (run)
• can sometimes achieve what freehold covenants cannot

Question 2

DEFINITION

Answer 2

• lease is a proprietary right it is an estate in land which is capable of being legal under s1 (1) (b) LPA (gives security of tenure)
• to be a legal estate it must be created or transferred by deed under s52 LPA unless it is the parol lease exception
• the deed is a document that in the face is a deed and signed and witnesses under s1 LP(MP)A 1989
• if 7+ years then to be complete it being a legal estate the TYA would need to be registered at HMLR as it is a registrable disposition under s27 LRA

Question 3

ESSENTIALLY CHARACTERISTICS OF A LEASE

Answer 3

• Street v mountford 85 year found certain qualities must be present to amount to a lease
• exclusive possession
• term certain
• rent
• according to LRA 02 leases for 7+ years must be created by deed as stated in LPA 25 and registered as well
• once a lease is created by deed it is legal therefore binding
• if not created by deed it can be an equitable lease which is non binding

Question 4

DIFFERENCES BETWEEN A LEASE AND LICENCE

Answer 4

• differs from a licence (Lloyd v dugdale 01)
• properly regarded as a proprietary interest in land and can be binding on owner of reversion
• leases fall into rent act 77 and housing act 88
• tenants can sue anyone in trespass even landlord can sue in nuisance and landlord can only avail himself of the remedy of forfeiture

Question 5

EXCLUSIVE POSSESSION

Answer 5

• lease will exist when the occupier of the land is given exclusive possession of premises
• Street v mountford: tenant possessing exclusive possession is able to exercise rights of land owner a tenant armed with exclusive possession can keep out strangers and landlord
• no tenancy unless occupier enjoys exclusive possession but an individual who does this is not necessarily a tenant

Look at cases on PowerPoint slides

Question 6

ISSUES WITH EXCLUSIVE POSSESSION

Answer 6

• is there a provision of services eg cleaning/laundry (markup v de silvaesa + aslan v Murphy) look at whether this was done or put into to make it not a lease
• hotel hostel care home are there restrictions on guests? They were considered licence not lease in appah v barncliffe investments + westminster cc v Clarke
• retention on keys aslan v Murphy if this is done not usually granted exclusive possession
• shared occupancy AG securities v Vaughn + Antoniades v villiers

Question 6

EXCLUSIVE POSSESSION II

Answer 6

• shams: any situation where it looks like the landlord is intentionally avoiding exclusive possession

Question 8

CERTAINTY OF TERM

Answer 8

• capable of being a legal estate
• must be clear beginning at ending
• a which comes to an end on a yet unknown date will knot suffice (lace v Chantler + Prudential assurance v London residuary Body)
• Berrisford v mexfield

Question 9

RENT

Answer 9

• Street v mountford said essential
• however s205 1 xxvii LPA a TYA Cludes a TYA whether or not at rent confirmed in Ashburn Anstalt v Arnold
• court will consider circumstances absence of rent may mean parties did not intend to create lease if rent is being paid it will be considered indicative
• description of rent will be looked at just because described as licence fee does not mean it is a licence

Question 10

EXCEPTIONS

Answer 10

• a lease is legally binding so
• there must be an intention to be bound by the relationship otherwise only licence
  Except:
• service occupancy: Norris v checksfield
• an act of generosity: Marcroft wagons ltd v smith heslop v burns gray v Taylor
• a family relationship: cobb v lane
• an individual allowed in occupation where there is an enforceable contract for sale: bretherton v Paton