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Leasehold Notes

GDL Law Notes > GDL Land Law Notes

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A more recent version of these Leasehold notes – written by Cambridge/Bpp/College Of Law students – is available here.

The following is a more accessble plain text extract of the PDF sample above, taken from our GDL Land Law Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:

Revision: Land

[LEASEHOLD ESTATES]

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One person with an estate in land (Landlord) grants the temporary right to another person (Tenant), giving him exclusive use of his land for a period of time

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Must be for a lesser term than the Landlord has the land

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Grants right to exclude all other people from the land (incl. Landlord)

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Different from licence (personal right of occupation - no legal estate in the land)

Terminology

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The Term of Years AbsoluteSweet & 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'

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Landlord grants lease (his estate is the freehold reversion)

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Lease is granted to the tenant: who can create a 'sub-lease'

Essential Characteristics of a lease 2 basic requirements:

1. Certainty of term

2. Exclusive possession Certainty of term

1. Fixed Term o

Maximum duration of the arrangement known from the outset - neither party can unilaterally bring the lease to an end unless there is a break in the clause

o

A lease "for the duration of the war" cannot create a legal estate (Lace v Chantler)

o

Prudential Assurance Co. Ltd v LRR: overruled decision in Ashburn v Arnold that the ability of either side to bring arrangement to an end meant that the terms were not uncertain

2. Periodic Term o

Where the length of the term is not fixed in advance - can still be a "certain term" 1

Revision: Land

[LEASEHOLD ESTATES]
o

Arrangement runs from period to period - automatically renewed unless and until either party serves notice upon the other that the arrangement is coming to an end - 'notice to quit'

May be created:

1. Expressly - written agreement

2. Impliedly - not In writing but arises simply by payment and acceptance of rent on a periodic basis
- Prudential Assurance

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The 'term' depends upon the period by reference to which the rent is calculated - not the intervals at which it is payable - Ladies' Hosiery and Underwear Ltd v Parker

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Rent commonly paid on the 'usual quarter days' - 25 March, 24 June, 29 Sept and 25 Dec

Problems with Certainty of Term Tenancy at Will: Tenant occupied land with Landlord's consent on understanding that either party may terminate tenancy at any time: no estate

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Although, if the tenant starts to pay rent by reference to a period, a common law periodic tenancy is created

Tenancy at Sufferance: Arises where a tenant holds over - remains in possession without the consent of the landlord after tenancy comes to an end: no trespass as original entry was lawful Tenancy for life: Automatically converted into a tenancy for a fixed term of 90 years

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Berrisford v Mexfield Housing Cooperative: SC criticised current law on certainty of term - requirement of certainty of term for the creation of a valid lease outdated - but they didn't remove requirement

Exclusive Possession

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Right to exclude all others from the property, including landlord

Formalities to create a Legal lease

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Depends on the length of the term of the lease Lease created for a period exceeding seven years o

must be by deed (s52 LPA 1925)

o

requirements for a valid deed (s1 LP (MP) A 1989) 2

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