Tutorial 5

Leases

  1. fixed term tenancy, e.g. 99 years
  1. periodic tenancy, e.g. weekly, monthly, quarterly or yearly
  1. a tenancy at will = mutual agreement, no rent and no period for which the T is entitled to the land. Determinable by either party on demand/or death of either of them
  1. tenancy at sufferance = no agreement and no period of entitlement. Occurs when T holds over at end of a lease with L’s sufferance.
  1. Tenancy by estoppel – L does not have legal title but cannot deny T has a tenancy. Where L acquires the legal estate the estoppel is “fed” = tenancy is valid against L and L’s successors in title. If a person with a superior title evicts T then T can dispute L’s title and claim damages from L (Industrial Properties (Barton Hill) Ltd v AEI Ltd)
  1. Equitable lease – arises where there is an agreement for a lease (such agreements are estate contracts). If potential L refuses to complete then potential T can seek specific performance. Walsh v Lonsdale – equity treats as done that which ought to be done and so in equity it is as if T already has his lease. N.b. post 1925 – a purchaser of the legal estate for money or money’s worth will not be bound if the estate contract is not correctly registered.
  1. Non-proprietary lease – it is possible to have a contractual relationship which acts between the parties as a lease, but without conferring on the “T” any estate in land. The relationship of the parties can exist as a tenancy purely within the framework of the contract between them, Bruton v London and Quadrant Housing Trust.
  1. Lease for life – lease determinable with life or lives. S.149(6) LPA 1925 is applicable if the lease is for a rent or in consideration of a fine – it converts such leases into a term of 90 years. In the event of T’s death L may terminate the lease by giving one month’s written notice.

N.b.

a)a lease for a term of years containing a provision allowing L to serve notice and terminate the lease on the death of T is NOT a lease for life - Bass Holdings v Lewis

b)if there is no rent/fine then the parties have created a life interest and such an estate can only subsist under a trust of land.

  1. perpetually renewable leases – where the power of renewal is given as often as the lease expires. Para 5 schedule 15 LPA 1925 – converts the lease into a lease for 2000 years. For a lease to be perpetually renewable clear wording must show that this is the intention of the parties. T can end the lease by serving notice at least 10 days before the date on which any renewal of the lease would have been due to take place (para 10 schedule 15)

The requirements of a lease

For a lease to exist there must be:

  1. exclusive possession
  1. certainty of term =a) a term which can be predicted at the commencement of the lease or

b)from year to year

Covenants

  1. Quiet enjoyment

-implied

-L promises not to interfere with T’s exercise and use of the right to possession during the term.

-It relates to quality of enjoyment of possession rather than peace and quiet

S. 6 Criminal Law Act 1977

- an offence to use or threaten violence to secure entry to premises when it is known that someone who is opposed to entry is on the premises.

s.1 Protection from Eviction Act 1977

an offence to deprive a residential occupier of premises or cause them to give up property by interfering with their peace/comfort

ss 27-28 Housing Act 1988 – CIVIL REMEDY!

9/6/88 onwards

provides for payment of damages where L deprives a residential occupier of possession/conduct likely to so do.

Defence – believed that the residential occupier had left

Damages = difference between value with T having a right to occupy the property and value where T no longer has such a right

  1. Repairs

-common law – no implied warranty as to fitness or condition and no obligation for L to maintain something that T enjoys an easement over

But,

a)furnished tenancies – term that premises are fit for human habitation is implied, Smith v Marrable. It is only implied in respect of the state of the property at the date of the letting

b)terms can be implied where necessary, Liverpool City Council v Irwin, where blocks of flats stairs and lifts are essential means of access and L must take reasonable care to maintain adequate lighting where natural light was non existent or insufficient.

c)Where T must carry out internal repairs and such repairs cannot be done unless L carries out external repairs the court may imply an obligation on the part of L, Barrett v Lounova. N.b. this is not a general principle – it depends upon the facts of the case.

d)Landlord and Tenant Act 1985

s.8 implied condition that house is fit for habitation at the start of the tenancy and throughout its length.

L on giving 24 hours written notice can enter and inspect.

Only applies to leases with a rent not exceeding £52p.a. (£80 in London)

s.10 lists criteria for determining habitability

s.11 – implied condition that L will keep in repair

a)structure

b)services, sanitary fittings, sinks and basins

c)space and water heating

Standard = relative to building and its location

Burden cannot be passed to T in the lease

L has right to inspect on giving 24 hours written notice

s.12 - a covenant imposing L’s obligation or the cost thereof on T is void

s. 13 – applies to leases granted after 24/10/61 of dwelling houses for a term of less than 7 years

Law commission has recommended that

i)there be an implied covenant by L that premises let on leases for less than 7 years shall be fit for human habitation and

ii)there be a statutory repairing obligation where the parties have made no provision for repairs

e) waste = a tort

voluntary waste = T causes damage

permissive waste = T allows property to fall into disrepair by neglect

f) O’Brien v Robinson – L is only liable to carry out a repair if he has beentold about it

g)s. 4 Defective Premises Act 1972

-where L has an obligation to repair then he has a duty of care to ensure that all persons likely to be affected are reasonably safe from P.I./damage to their property

-the duty is owed if L knows or ought to have known about the defect

-s. 4 (4) where L has the right to enter to carryout necessary repairs he is regarded as having an obligation to repair for the purposes of s.4 (1)

h)where L was the builder and built the house negligently he will be responsible for any repairs

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