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Licences and Non-Standard Leases (Bruton Leases (Bruton v London &…
Licences and Non-Standard Leases
s1(1) LPA 1925
A licence is not an estate in land
Licence doesn't confer any interest in land and so purchasers are not bound by the interests - Clore v Theatrical Properties Ltd [1936]
Types of licence
Bare
Single permission
No consideration or charge
Can be expressed or implied
No formalities are necessary
Contractual
Contractually created permission
Consideration or charge is needed
Generally express agreements but can be implied
Can be oral or in writing and there is no need to comply with s2 LP(MP)A 1989
Enforceability of Licences
Standard view is that a licence is a personal agreement and cannot be binding on any future purchaser of the land under Clore [1936]
Ashburn v Arnold upheld this view that licences cannot be passed on to purchasers and bind them
Bruton Leases
General rule that you can't give more rights to a party than you have yourself. e.g. cant grant a lease if you only have a licence
Bruton v London & Quadrant Housing Trust [2000]
Lambeth council gave housing trust a licence to control a block of flats
Trust gave C the right to occupy a flat, and C later claimed proprietary rights to get the same protections as those who would have a lease
HL held that C did have a proprietary right and could benefit from protections granted to tenants
Islington v Green [2005]
Housing authority given a notice to quit by the council and all residents told that they would have to relocate
D argued that they should be given the same protections as tenants as that was what they essentially were
Court said that they didn't have any proprietary rights and were told to leave the land
Courts may be willing to allow Bruton type tenancies on a limited basis, but it is more likely they will be granted on policy considerations