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Essential characteristics of a lease (Definitional requirements (Street v…
Essential characteristics of a lease
Definitional requirements
Street v Mountford (1985) - per Lord Templeman: "the parties cannot turn a tenancy into a lease merely by calling it one" - substance not form
Certain duration + exclusive possession = lease
Also said payment of rent was required - s205 (xxvii) LPA 1925 - Ashburn Astalt v Arnold (1989)
Before this Sommer v Hazelhurst was applied - documentation used indicates intentions of parties
Reasons it's important to know if licence or leasehold
Proprietary right over personal - can stay for term
Issue of who is responsible for repairs - LTA 1985 - if have lease to which this applies, landlord has responsibility for certain repairs
Certain duration
1) Fixed term
Maximum duration known at outset
Lace v Chandler (1944)
Prudential Insurance Co Ltd v London Residurary Body (1992) - don't need exact term, just need to know maximum
Berrisford v Mexfield Housing Co-operative (2011) - leases for life converted to 90 years ending at death - s149(6) LPA 1925
Break clauses/forefeiture clauses - enable one or another party to bring to an end - don't offend fixed term rule because know maximum duration from outset
2) Periodic term
Hammond v Farrow (1904) - measured by agreed mode of payment - weekly, monthly, quarterly
Can be created expressly
Or implied - Prudential v London Residuary Body - move in and start paying
Exclusive possession - excludes all, except landlord
Substance not form - Street v Mountford - apparent absence of exclusive possession is not conclusive
Retention of key - Aslan v Murphy (1989) - distinguish restricted/unrestricted access - aka is it just used for making reparings.emergencies or used everyday - is it used at all
Reserving right to share or introduce others - Antoniades v Villiers/AG Securities v Vaughan (1990)
Antoniades - unmarried couple - given separate identical agreements called licences - clauses allowing sharing and introduction - but one roomed apartment - 'air of complete unreality' - held did have exclusive possession 'despite landlord's best efforts to create a smoke screen'
AG Securities - large flat - four bedrooms and several lounges - clause reserved right to introduce others - held genuine and defeating exclusive possession - people living there didn't know each other before moving in - different people moving in and out - lockable rooms - clause had limit of four - right was exercised - when people left landlord asked current occupants if they knew anyone - then advertised
Lodgers/provision of services - Markou v da Silvesa (1986) - if genuine and extensive - some landlords say will provide but never do
Multiple occupiers
Step 1 - do occupants collectively have exclusive possession - if not, then licences only - analysis of arrangement between occupiers and outside world - not between each other
Step 2 - what kind of arrangement between occupants?
Joint tenancy of whole premises - collectively responsible for rent
4 unities - possession, interest, title, time
Possession - everybody can use and occupy whole
Interest - everybody holding same property - aka leasehold for two years - whether landlord intends them to be jointly liable
AG Securities v Vaughan/Antoniades v Villiers - in Antoniades had identical agreements - never intended to b individually liable - came together - would be both or neither
Mikeover Ltd v Brady (1989) - couple genuinely intended to pay half each - landlord intended to receive payment in this way - when she left he couldn't stay and pay all
Hadjiloucas v Crean (1987)
Stribling v Wickham (1989)
Individual tenancy of particular part
Business tenancies - if intended as licence, will take it as one - equality of bargaining power
Street v Mountford applies - Dresden Estates v Collinson (1987) - reserved right to move to other premises - no exclusive possession
Courts prepared to grant licence more readily
High degree of landlord control
Esso Petroleum Co Ltd v Fumegrange Ltd (1994)
Clear Channel UK v Manchester City Council (2006) - can't create agreement on your terms sayin licence, then try to argue lease
Exceptions to Street v Mountford criteria - examples
No intention to create legal relations
Facchini v Bryson (1952) - generosity, friendship, family
Service occupancy
ONLY where employer/employee relationship - Norris v Checksfield (1991)
Royal Philanthropic Society v County - house master with premises on grounds - got married and moved to another place owned by the school - no longer for benefit of employment
Formalities for acquisition
Legal lease
No formalities if s54(2) LPA 1925 applies
Otherwise, deed - s52 LPA; s1 LP(MP)A 1989
registration if lease is for 7+ years
No registration if 7 years or less - overriding interest Sched 3 para 1
Legal interests bind the world in unregistered land
Equitable lease
Agreement for lease - failed legal lease - landlord has equitable estate - s2 LP(MP)A 1989
Must be protected to be enforceable against new landlord
s32 notice if landlord's title is registered/ overriding interest if tenant in actual occupation - Sched 3 para 2
C (iv) Land Charge if landlord's title is unregistered