This is an extract of our Leases document, which we sell as part of our GDL Land Law Notes collection written by the top tier of Cambridge/Bpp/College Of Law students.
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Distinguishing a Lease from a Licence:
Lease Property right Exclusive possession Binds third parties Security of tenure
Licence Personal right No exclusive possession Doesn't bind third parties No security
Something that looks like a lease but fails to satisfy the ingredients of a lease will be a licence (personal right)
Characteristics of a lease A landlord grants a leasehold title out of his own title, which will be an interest which lasts longer than the leasehold, to a tenant. Street v Mountford S charged Mrs Mountford PS37 p/w as a 'licence fee' with 14 days' notice for termination. She signed a form saying she agreed that the Rent Act didn't apply to her. She challenged this as she wanted to be under the protection of the Act Held: Mrs Mountford had a lease despite the express intention behind the contract
? Lord Templeman: "the only intention which is relevant is the intention demonstrated by the agreement to grant exclusive possession for a term at a rent." Heslop v Burns H allowed the Burns to live in a cottage rent free & integrated with the family, becoming godfather of their daughter & paying her school fees. They remained after the death of the owner & sought to establish a leasehold title to the cottage Held: they were licencees because there was no intention to create legal relations. This case confirms that whilst rent is NOT a prerequisite of a valid lease (S.205(1)17) LPA 1925) it will be a factor suggestive of personal rights only Certainty of term
? Sweet & Maxwell: "the grant of a right to the exclusive possession of land for a determinate term less than that which the grantor has himself in the land" The term must be fixed or periodic. Fixed term lease:
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