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LEASES - Coggle Diagram
LEASES
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LEASE OR LICENCE
PROBLEM Q
- In problem q – objective (reality of the situation rather than form of agreement) or subjective approach (intention of parties) Bryson [1952] - criticised – landlords had more power - Street v Mountford [1985] ‘in order for a lease to rise there has to be exclusive possession(right to exclude all others including the landlord), for a rent, at a term’
- However in Ashburn v Arnold [1989] - LPA 1925 s205 ‘with or without rent’
- Term = Berridge [1881] ‘there must be a certainty of duration’
- Pratt [1965] - no certain start date = no lease – tenant did not take up occupation
- Michaels [1945] - did occupy the property – no clear start date but was granted as a lease – but the occupation shows a starting date
- Lace [1944] - clear when lease began – for the duration of the war – failed as a lease as was not a certain end-date
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EXCLUSIVE POSSESSION
- An essential requirement for a lease
- The right to exclude all others, including the landlord
- Exclusive occupation is not enough for a lease – only have exclusive use of the premises – a license not a lease
- Street v Mountford ‘an occupier of a residential accommodation at a rent for a term is either a lodger or a tenant.’
- SHAMS – single occupiers
= Murphy [1996] - single occupier, licence agreement – landlord can have access to clean – can have another occupier – in practice the landlord was not doing the cleaning – court granted a lease as it was exclusive possession
= Jones [1992] - a genuine licence – occupiers moved in
MULTIPLE OCCUPIERS
- Relationship between occupiers is key in multiple occupancy cases
- Vaughan – occupiers were independent occupiers – was a licence as they were coming and going
- Villiers [1990] - a couple – signed licence agreement – exclusive possession as only one bedroom = lease
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LANDLORD - STRONGER
- Rental income
- Capital growth
- Surplus property
- To enforce obligations against occupier
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TENANT
- Temporary accommodation
- Need flexibility
- Cannot afford to buy
- Unsure about buying in current market
2002 Act
- seeks to ensure that as many estates in land as is possible become registered. Also ensures that as many third party rights are recorded on the register.
- System depends on registration of title, not of land – one plot of land can have more than one type of title registered on it. E.g. freehold owner and his tenant
- For a land to be registered it is either a legal freehold or a legal leasehold of over seven years
- It is to have a record of title of land and third-party interests in that land – Land registry estimates that over 85% of titles are registered
- Register is an open public document on payment – each register gets a unique title
- registered charges derive from the power of the registered proprietor to mortgage the land in order to release its capital value.
- under LRA 2002 the only way to mortage a registered land is by 'a charge by deed expressed to be by way of legal mortage' - must be registered as a charge
- compared to 1925, 2002 reduces the scope and range of overriding interests in respects of both Sch 1 and 3 - allows the purchaser an opportunity to know
NOT A LEASE
- part of your occupation (caretaker)
- charitable occupancy - Palmer