Read the summary and the most important questions on WS5 Leases

• 1 STEP 1: Is it a lease or licence?

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• What is the definition of a licence and will it bind the purchaser?

  Gives the licensee personal permission over another land but it does not give the licensee a proprietary interest and is not binding on third parties. There are two forms of licences, bare and contractual (refer to WS1)

• 1.1.1 Certainty of Duration

• What is the definition of 'certainty of duration' (s205(1)(xxvii) LPA 1925 under s1(1)(b) LPA 1925?

  'a term of years absolute' = beginning and end of the lease are known.

• 1.1.2 Exclusive Possession (one occupier)

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• Does exclusive possession allow the tenant to exclude everyone including the landlord from the premise? 

  Right to exclude everyone including the landlord.

• How does Street v Mountford describe exclusive possession?

  'exclusive possession at a rent for a term'

• 1.1.2.1 Where there is multiple occupancy? (joint tenancy)

• Explain what 4 unities have to be present for joint tenants to have exclusive possession and the right to exclude others?

  • Possession - equal right to occupy all of the premises

  • Interest - same leasehold interest for the same term
  • Time - interests start at the same time
  • Title - All interests derive from the same document

  (Refer to WS4 - co-ownership)

• Explain why AG Securities v Vaughan failed to show exclusive possession?

  It was a licence because:
  

  • Signed independent agreements 
  • No exclusive possession on any one party or jointly 
  • Rooms occupied on a rolling basis 
  • different start dates and rents 

• In contrast with Antoniades v Villers which successfully showed exclusive possession?

  It was a lease because:
  

  • Identical agreements signed on the same day 
  • Joint and exclusive possession 
  • 'must consider the surrounding circumstances including any relationship between the occupiers'

• 1.1.3 (Rent)

• Is rent essential to prove a tenancy (Ashburn v Arnold)?

  Although rent indicates an intention to create legal relations, it is not essential.

• 2 STEP 2: If it is a lease, what type is it?

• 2.1 Fixed term

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• When do the parties (the tenant and the landlord) know the maximum duration of the lease?

  The maximum duration of the lease is known from the outset.

• How must a fixed term lease be created (s52 LPA 1925)?

  Must be created expressly (s52 LPA 1925).