Leases Notes

Leases

A proprietary interest and an estate in land, existing at law or in equity.

Arises when a lessor/landlord confers on a lessee/tenant

The right of exclusive possession of certain land for a period subject to a definite limit, or that can be made subject to a definite limit by either party.

Residential Tenancies Act 1986

Applies to residential leases within its scope.

Property Law Act 2007 (part 4)

Applies to all leases other than residential leases.

Essentials Required for the Creation of a Lease

Fixed or periodic term, certain premises, exclusive possession, proper creation.

Periodic leases

Each party can terminate the lease at the end of any period by giving appropriate notice.

Assigned lease

Lessee may transfer their rights and obligations under the lease to another party.

Express Periodic Tenancies

Grant for a 'period' (e.g., a week, month, year) that will continue to renew itself until either party terminates the lease by giving notice to quit.

Implied Tenancies and Leases ('s 210 Leases')

The lessee is in possession of the land, but there is no agreement (express or implied) as to the duration of the term; or The lessee remains in possession of the land with the lessor's consent, although the term of the lease has expired. (Only applies to non-residential leases)

Tenancy at Will

Created by express or implied agreement, confers exclusive possession on the occupier for an indefinite period and may be terminated at any time, at the will of either party.

Tenancy at Sufferance

Results where a tenant holds over at the expiry of a fixed term without the consent or dissent of the landlord.

Quiet Enjoyment

A covenant that secures the lessee against interruption by any means in the possession of the property leased.

Lease for Life

Under PLA 2007, in NZ, it is possible to create a lease for life without needing to specify a maximum fixed term of years and without it being a freehold estate (s 61). Often used in conjunction with family trusts. Also common in retirement villages. In RTs, the death of the tenant usually is the determinative factor, but this is not the case for NRTs.

Perpetual Leases

Not recognized at common law, a vernacular used term. Phrase often inaccurately used to refer to perpetually renewable leases, which are for a fixed period and then perpetually renewable for the same period.

Glasgow Leases

Usually for perpetually renewable periods of 14 or 21 years. A type of arrangement common with charity - property put to a certain use without the transfer of ownership. Have been used to grant terms that last over 100 years, de facto fee simple ownership, but with the right of termination.