Land S5a: Types of leases and leasehold covenants.

A lease is (2 main elements)…

If the criteria of a lease has not been met, then a ? has been created.

an interest in land which grants exclusive possession of a property for a fixed period of time. Rent is indicative of a lease, but it is not essential.

license

Note: where there is in the lease an unexercised right to allow another person to occupy the flat, there will still be exclusive possession for the purposes of having a lease.

Types of lease:

1) Fixed term. What is needed for this type?

2) Periodic tenancy. What is needed for this type?

1) An express grant of the lease is needed to identify the length of the term.

2) May be implied by the payment of periodic rent, so a deed is not necessary for this type of legal lease - the parol lease exception will apply.

Note: the 3 year limitation for the parol lease exception in not applicable to periodic leases - the lease is the length of the period (which will be less than 3 years).

The general rule is that a periodic tenancy requires ? to be terminated.

The exception is for a periodic tenancy of a dwelling. This requires 3 things:

at least 1 period’s notice (this depends on periodic term of the tenancy (e.g., a week for a weekly tenancy)).

notice in writing with 4 weeks notice, and a court order.

A lease will contain covenants made between landlord and tenant setting out their rights and obligations during the term of the lease.

List 5 examples of covenants in a lease. Q. R. R. U. A.

1) Quiet enjoyment. To protect tenant from interference with their right to possession of the property from the landlord.

2) Repair. Landlord and Tenant Act 1985: Landlord responsible for repair of residential property where lease is under 7 years. Tenant must notify landlord.

3) Rent. Tenant obligation to pay rent.

4) User. Restrictions on the use to which the property can be put.

5) Alienation. Covenant not to assign or sub-let the lease.

What is alienation?

What are the 4 ways that alienation may happen?

What are the two types of covenants against alienation?

Alienation is the disposal of a leasehold estate by the tenant.

1) Assignment of the lease from the original tenant to a new tenant. 2) The original tenant grants a sub-lease to another. 3) A mortgage or charge is granted to a lender. 4) The tenant surrenders exclusive possession.

Types of covenants against alienation

1) Absolute covenant.

Any attempt by the tenant to deal with the lease will be a breach of covenant.

2) Qualified covenant.

The tenant may assign or part with possession provided the seller contains the consent of the landlord.

The landlord must not unreasonably withhold consent (s.19 Landlord and Tenant Act 1927).

The landlord must decide and give consent or reasonable grounds for refusal within a reasonable period of the tenant’s request .

What are the requirements for an equitable lease?

An equitable lease must meet the requirements of an estate contract and be in writing, signed by or on behalf of both parties and containing all the agreed terms.