Leases

Technical name for a leasehold estate:

Term of Years Absolute (differentiated from a lease by Brutant [2000] as a ToYA is a proprietary estate)

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Street v Mounford [1985] Lord Templemans 3 Characteristics of a Lease

1. Certainty of Term 2. Exclusive Possession 3. Rent

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Certainty of Term, Lace v Chantler [1944]

Must be a fixed and maximum duration. As long as Max Dur is known, it is irrelevant if it terminates early.

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Certainty of Term, S149 LPA 1925

Whilst there is a requirement of a certain start date, it can be delayed for up to 21 years

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Certainty of Term, What if a term appears uncertain?

The courts have shown a willingess to imply a periodic tenancy if: 1. Tenant in possession 2. Rent has begun to be paid by reference to a period - Prudential Assurance [1992]

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Certainty of Term, What if a term appears uncertain - a modern approach?

Mexfield Housing [2011] - an uncertain term should be treated as a lease for life and thus a lease for 90 years as per S149(6) LPA 1925 - also expressed disapproval for requirement of certainty of term

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Exclusive Possession, Objective?

Street v Mounford - The courts look at the substance of the transaction and not the label by the Landlord (except commercially, more subjective approach - National Car Park [2002])

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Exclusive Possession, Case Law

Antoniades v Villiers [1990] - Couple clearly intended to have a family home, and it was too small to share. Landlord had a clause banning exclusive possession. Was held to be a lease and thus the term a sham.

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Exclusive Possession, does the presence of EP necessitate the finding of a lease?

Facchini v Bryson [1952] - No, since the landlord still could have overall control

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Rent, Ashburn Anstalt v Arnold [1989]

Rent is not essential for the finding of a lease, as confirmed by S205(1)(xxvii) LPA 1925

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Individual Leases?

AG Securities v Vaughan [1990] Obiter - as long as each tenant has a defined area from which they can exclude all others, you could have individual leases and thus multiple occupation.

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Formalities for Creation,Needs a Capable Grantor

Bruton v London & Quadrant Housing [2000] has undermined htis principle as the grantor had no proprietary estate from which to grant the lease

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Formalities for Creation, Agreement for a lease over 3 years

S2 LP(MP)A 1989 requires a valid land contract: in writing, containing all expressly agreed terms and signed by both parties

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Formalities for Creation, Agreement for a lease under three years

S2(5a) LP(MP)A 1989 - Exception to the rule and can be done orally as not needed to be in writing

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Formalities for Creation, Proprietary Status for Agreement to Grant a Lease

The valid contract, if capable of specific performance (Coatsworth v Johnson [1885]), transfers an equitable interest in the land to the prospective tenant - Walsh v Lonsdale [1882]

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Termination of Leases, Methods:

1. Expiry 2. Notice to Quit 3. Surrender (Mutual Agreement) 4. Merger (Tenant obtains freehold) 5. Repudiatory Breach (Hussein v Mehlman [1992] Landlord breach means T can walk away) 6. Forfeiture

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Termination of Leases, Notice to Quit, Joint Tenants

Where one JT gives notice to quit, it is effective on all - Hammersmith & Fulham LBC v Monk ]1992]

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Termination of Leases, Forfeiture

Available if the tenant is in breach, unless landlord has continued to accept rent following (Central Estates v Woolgar (2) [1972])).

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Leases

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