LEASEHOLD

LEASEHOLD

Must be a start & end point
key case - STREET v MOUNTFORD 3 stage test
1. 1) Exclusive possession important factor
  1. Tenant should have right to exclude everyone from property, including landlord
    1. Landlord may retain a key only to check or facilitate repairs with notice
      1. If landlord reserves right to enter at any time for any reason, not consistent with exclusive possession so would be a licence
        Contrast with exclusive occupation - ie hotel guest
  2. 2) For a fixed or certain period of time
    1. 3) For the payment of rent (although not essential now following case of ASHBURN ANSTALT v ARNOLD)
Court will be more flexible about whether a lease or licence in certain situations
1. Family Situations
2. Acts of Charity
3. Service Occupancy - live in with job
4. Could argue a licence but payment of rent will make it more formal as may be an intention to create a legal lease. Amount of rent paid could be a relevant factor
Creation of legal leases: 3 yrs or more - must be by deed s52(1) LPA; 7 yrs or more - must be registered s4 LRA 02
1. If not in law, will not automatically exist in equity, consider WALSH v LONSDALE
2. If above 3 years requires a deed, in equity requires a contract, Implied tenancy as last resort
Periodic tenancy - express or implied. How rent to be paid is expressed is how to determine the period of the lease ie if expressed as £10,000 pa, yearly tenancy.
1. 2 situations when these arise: Holding over, when fixed term ends, tenant does not vacate and owner still accepts rent
  1. OR, entering into possession - tenant is given possession with owners consent & rent accepted
Tenancy at Will - until first rent accepted, tenancy at will, converts to implied periodic as soon as rent starts to be accepted, then becomes legal

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	Created by costafortune almost 11 years ago