Lease definition
Agreement creating an interest in land for a fixed or ascertainable period; requires landlord and tenant; forms the legal estate called a term of years absolute under s.1(1) LPA 1925
Lease as estate and contract
Leasehold is both a legal estate in land and a contract with covenants that last for its duration
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Lease definition
Agreement creating an interest in land for a fixed or ascertainable period; requires landlord and tenant; forms the legal estate called a term of years absolute under s.1(1) LPA 1925
Lease as estate and contract
Leasehold is both a legal estate in land and a contract with covenants that last for its duration
Assignment vs sublease
Assignment sells the existing lease with no new lease created; sublease grants a new shorter lease under the head‑lease
Essential characteristics
Lease must give exclusive possession; be for a fixed or certain term; and satisfy formalities
Exclusive possession meaning
Right to exclude all others including the landlord; without it the arrangement is a licence
Street v Mountford
Case confirms that substance not label decides lease; exclusive possession for a term at rent creates a lease
Licence distinction
Licence is a personal right only enforceable between original parties and cannot be assigned
No exclusive possession example
Westminster v Clarke held hostel occupier was licensee due to shared facilities and staff access
Fixed or certain term rule
Lease must have a definite maximum length under s.205(1)(xxvii) LPA 1925
Uncertain term invalid case
Lace v Chantler voided lease for duration of the war as term was uncertain
Prudential v LRB
Lease that lasted until land needed for road failed for uncertainty; periodic tenancy arose by occupation and rent
Berrisford v Mexfield
Supreme Court upheld certainty rule but viewed it as outdated and for Parliament to reform
General formalities
Legal lease must be granted by deed per s.52(1) LPA 1925 and s.1 LPMPA 1989
Short lease exception
Lease ≤ three years in possession at best rent and without fine can be oral under s.54(2) LPA 1925
Criteria for s.54(2)
Term not exceeding three years; tenant in possession immediately; rent close to market; no premium
Assignment formalities
All assignments of existing leases must be by deed as in Crago v Julian
Equitable lease
Arises where a valid agreement exists but deed or registration requirements are unmet; equity enforces it as in Walsh v Lonsdale
Types of leases
Fixed‑term lease ends automatically on expiry; periodic tenancy continues indefinitely until proper notice is given
Periodic tenancy creation
Can be express or implied when tenant holds over and rent is accepted
Ending periodic tenancy
Notice to quit must match the length and end of a period unless parties agree otherwise
Express covenants
Written promises such as pay rent; repair; insure; no alterations; quiet enjoyment by landlord
Implied landlord covenant
Quiet enjoyment protects tenant from disturbance by landlord or those claiming under landlord
Quiet enjoyment breach example
Owen v Gadd where scaffolding blocked shop entrance and landlord was liable
No derogation from grant
Landlord must not act to frustrate purpose for which lease was granted
Implied tenant covenant
Tenant must pay rent; take reasonable care; and use premises in tenant‑like manner
Alienation covenants
May be absolute; qualified requiring consent; or fully qualified where consent cannot be unreasonably withheld
Reasonableness standard
Landlord refusal of consent must relate to landlord‑tenant relationship as in International Drilling Fluids v Louisville Investment
LTCA 1995 overview
For leases from 1 Jan 1996 covenants pass automatically to assignee; outgoing tenant released on assignment under s.5
Authorised Guarantee Agreement
Outgoing tenant may guarantee assignee’s performance under s.16 LTCA 1995 until next assignment
Privity before 1996
Original tenant remained liable after assignment and landlord could sue due to privity of contract
Spencer’s Case
Real covenants run with lease so assignee takes benefit and burden while holding the term
Overriding lease right
Former tenant who pays entire sum under s.17 notice can claim an overriding lease under s.19 LTCA 1995
Landlord remedies rent
Sue for debt within six years or use Commercial Rent Arrears Recovery after seven days arrears with notice
Forfeiture basics
Landlord may re‑enter to end lease if right reserved and not waived; court can grant relief
Notice for forfeiture
s.146 LPA 1925 requires notice specifying breach and time to remedy except for rent arrears
Relief against forfeiture
Court may restore lease if breach remedied and costs paid; equitable discretion applies
Tenant remedies
Damages specific performance or injunction for landlord breach of covenant such as quiet enjoyment