Chapter 6 Key facts checklists
The leasehold estate
- A lease is one of the estates in land capable of being legal: s 1(1)(b) Law of Property Act 1925 (LPA 1925).
- Without both certainty of term and exclusive possession there can be no lease (Street v Mountford [1985]), although the presence of both does not necessarily mean that a lease exists. Exclusive occupation could be based upon a licence (Facchini v Bryson [1952]).
- In addition to certainty of term and exclusive possession, a joint tenancy requires the four unities (AG Securities Ltd v Vaughan [1990]).
- Formalities for the creation of a legal lease differ depending upon the duration of the lease.
- Where these formalities have not been met, an equitable lease may exist provided there is a valid contract capable of specific performance (Walsh v Lonsdale (1882)).
- An equitable lease is not as good as the legal equivalent.
- The most common types of leases are fixed term and periodic.
- The process of terminating a lease by forfeiture differs depending upon the type of covenant breached. In each case, whether the property is residential or commercial will dictate the actual procedure to follow and may influence the tenant’s (and any sub-tenant’s) ability to seek relief.