1. What is a lease
1.1. A lease is a type of legal estate in land
1.1.1. It is known as a term of years absolute = S.1(1)(b) LPA
1.2. It may be used for businesses or individuals who cannot afford to buy a property
1.3. Have the right to use the property for a defined period of time
2. Types of leases
2.1. Fixed term
2.1.1. Term is for a defined period of time and at the end of the term the lease will automatically end
2.2. Periodic
2.2.1. The lease will continue from term to term as it is indefinite and it will end when one party gives notice for the length of the term
2.2.1.1. An implied periodic tenancy is when the lease continues and the same terms and rent will be implied as the previous term
2.3. Tenancy at will
2.3.1. This is when a party has no written contract and either party can end the tenancy when they wish
3. When to grant a lease
3.1. A lease will only be legal if it is created by deed
3.2. A lease should be in writing, which is signed and contains all the terms of the lease
3.3. It should be registered or else it will fail to become a legal lease
3.4. A lease should be made now and not in the future
3.5. A lease for less than 3 years can be created by parol
4. An equitable lease
4.1. Equity will step in and say that there should be a lease but one which can claim an equitable remedy
4.2. However you must have clean hands for equity to give you a remedy
4.3. An equitable lease should still be in writing and signed and contain all the terms
4.3.1. Just not created in a deed
4.4. If a court would grant a specific performance then the lease should be treated as a legal one = Walsh V Lonsdale
4.5. May be able to use overriding interest = Schedule 3 Para 2 (actual occupation)
4.6. This is when the lease fails to meet the correct formalities
5. Requirements for a lease
5.1. Exclusive possession = Street V Mountford
5.1.1. A tenant armed with exclusive possession has the right to exclude all strangers and even the landlord
5.1.2. It is all the rights that an absolute owner has
5.1.3. The landlord provides neither services nor attendance
5.2. A determinate term = Lace V Chantler
5.2.1. The term must be for a specific term
5.2.2. A defined length of time is needed to form a lease
5.2.3. A periodic lease will satisfy this requirement as it is for a specific time it just continues once the time has ended
5.3. Term less than that of the grantor
5.3.1. The term granted must have been granted for a lesser term than the one the grantor has
5.3.2. If the owner has a freehold title for 99 years and he grants a term it must be for 98 years or less
5.4. Rent = Ashburn Anstalt V Arnold
5.4.1. Rent is not specifically required
5.4.2. Some cases such as Street V Mountford did require rent
5.4.3. S.205(1)LPA reinforces the idea that rent is not needed as it says 'whether or not at a rent'
6. When to register a lease
6.1. Registered land
6.1.1. A legal lease
6.1.1.1. If it is for 7 years or more and it is registered it will bind
6.1.1.1.1. If it is not registered it will lose its right to be legal = S.27LRA
6.1.1.2. If it is for 7 years or less then it may be an overriding interest = Schedule 3 Para 1 LRA
6.1.2. An equitable lease
6.1.2.1. Will bind if it is placed as a notice on the Land registry
6.2. Unregistered land
6.2.1. A legal lease
6.2.1.1. Will be binding to a third party if it is registered
6.2.2. An equitable lease
6.2.2.1. Will be binding if it is placed as a land charge on the Land Charges Registry
6.2.2.1.1. Class C(iv)