F106LAW Leasehold and Licence

LEASEHOLD

one of two Legal estates under the LPA 1925 and can be referred to as term of years absolute (s.205) the other obviuosly freehold

ESSENTIALS

grants an interest in land only and will require by statute s.52(1) LPA to be made in the form of a deed

tenant has the right of exclusive possession (inc. Landlord)

Grantor must retain a reversionary interest either the freehold or a lease longer the one granted

Term must be certain, either

Fixed length at outset or

Periodic, runs from one term to the next until terminated by notice which may be express (written or oral) or implied enters and pays rent or holds over (remains in occupation) following expiration

voided under uncertainty

Lace v. Chantler (1944) lease held void as it was 'for the duration of the war, and that would have been unknown

Prudential Assurance v. London Residuary Body (1992) lease granted until 2 months notice was given

Correct formalities under s.52(1)

must be made in writing and fulfill requirements of s.1 LPMPA 1989

intended to be a deed(dy describing itself)

executed as a deed (signed,witnessed, attested and delivered)

EXCEPTION

s.54 LPA 1925 a deed is not required for leases under 3 years which may be created by tennancy agreement to avoid complications

Distinguish from a Licence

Definition: Basic permission to enter land and do…