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Landlord and Tenant Law: Licenses, Leases, and Key Concepts, Study notes of Land Law

Cardiff UniversityLand Law

A comprehensive overview of landlord and tenant law, focusing on the distinctions between licenses and leases. It delves into the legal framework surrounding these concepts, including relevant legislation, case law, and key principles. The characteristics of licenses, leases, and their respective legal implications, offering insights into the rights and obligations of landlords and tenants.

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2024/2025

Available from 04/16/2025

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License and leases
License:(a personal right not proprietary)Permission for licensee to do something on
licensor land. Notainterest or estate (s1(1) LPA 1925). Types...
1. Bare: single permission no consideration or charge, express or implied and no
formalities. Case wood v. Leadbitter [1845] if license provoked its trespass.
2. Contractual: contractually created permission no consideration or charge. Express
or implied(generally express) can or cannot be in writing (no need to comply) with
s2 LP(MP) A 1989. case: tanner v tanner (1975).
3. License coupled with proprietary interest: no independent status and is only
enforceable between licensor and licensee not the successor of the land. Case:
Ashburn Anstalt v Arnold [1989].
Third parties: licenses does not give permission to third parties to enter or trespass
(Thomas v Sorrell (1673)). Case Manchester airport plc v Dutton (2000). In contractual
licenses – third parties can be bound if they fulfil s1 of the contract (rights of third parties
act 1999 and it also binds third parties in case of constructive trust.
Key cases: Clore v theatrical properties ltd (1936) -licensee cannot enforce contract as
against a successor in title.
Kewell investment v Arthur maiden (1990) -you need a license to put up advertising
hoarding
Re Hampstead garden suburb institute (1995) -Permission for licensee to do something
on licensor land:
Onyx v beard (1998) -you need a license to use buildings as a social club.
Winter garden theatre v millennium production ltd (1948) - (equity)court held a license can
be revoked on giving reasonable notice
Difference between licenses and leases
1. S2 LP(MP)A 1989 AND S52 LPA 1925 DOESNT APPLY TO LICENSES.
2. Licenses don't bind third parties but leases does bind.
3. Leases give security of tenure and landlord duty to repair licenses doesn’t.
4. Licenses can be determined by reasonable time subject to terms of contract if any.
Leases require period of notice and have technical rules to their determination.
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License and leases

License: (a personal right not proprietary) Permission for licensee to do something on licensor land. Not a interest or estate (s1(1) LPA 1925). Types...

  1. Bare: single permission no consideration or charge, express or implied and no formalities. Case wood v. Leadbitter [1845] if license provoked its trespass.
  2. Contractual: contractually created permission no consideration or charge. Express or implied(generally express) can or cannot be in writing (no need to comply) with s2 LP(MP) A 1989. case: tanner v tanner (1975).
  3. License coupled with proprietary interest: no independent status and is only enforceable between licensor and licensee not the successor of the land. Case: Ashburn Anstalt v Arnold [1989]. Third parties : licenses does not give permission to third parties to enter or trespass (Thomas v Sorrell (1673)). Case Manchester airport plc v Dutton (2000). In contractual licenses – third parties can be bound if they fulfil s1 of the contract (rights of third parties act 1999 and it also binds third parties in case of constructive trust. Key cases : Clore v theatrical properties ltd (1936) - licensee cannot enforce contract as against a successor in title. Kewell investment v Arthur maiden (1990) - you need a license to put up advertising hoarding Re Hampstead garden suburb institute (1995) - Permission for licensee to do something on licensor land: Onyx v beard (1998) - you need a license to use buildings as a social club. Winter garden theatre v millennium production ltd (1948) - (equity) court held a license can be revoked on giving reasonable notice Difference between licenses and leases
  4. S2 LP(MP)A 1989 AND S52 LPA 1925 DOESNT APPLY TO LICENSES.
  5. Licenses don't bind third parties but leases does bind.
  6. Leases give security of tenure and landlord duty to repair licenses doesn’t.
  7. Licenses can be determined by reasonable time subject to terms of contract if any. Leases require period of notice and have technical rules to their determination.
  1. Licenses – personal right – no legal protection. Leases – proprietary right – protection. Leases Basics: Def: s1 (1) LPA 1925 - proprietary right - commonly when a landowner permits another person to use their land for a period of time usually in return for the payment of rent. Generally creates an estate in land, capable of binding third parties. Exclusive possession for a fixed or periodic term.  residential leases tend to be shorter than their commercial counterparts. average residential lease lasts one year, the average commercial lease is around five years in duration.  Residential leases commonly landlord is responsible for repair while in commercial its tenant.  Protection gained under the Landlord and Tenant Act 1985 (LTA 1985) for repairing and Housing Act 1988 for eviction.  Leases contain covenants which are promises made between landlord and tenant either to do or not to do particular things in relation to the land. These ‘promises’ can be express, implied into the leases by statute (such as by s. 11 of the LTA 1985 – repair obligation).  under s. 205(1)(xxvii) of the LPA 1925 and The decision of the Court of Appeal in Ashburn Anstalt v Arnold the ‘term of years’ is said to include ‘a term of years … whether or not at a rent’. . Rent provide evidence of an intention to create legal relations. No rent case
  • Ashburn Anstalt v Arnold. No rent but possession – no lease - Colchester Council v Smith [1991]. Exclusive possession: PITT, Unity of Possession, Unity of Interest, Unity of Title, Unity of Time. If all 4 unities are present, a joint tenancy exists. KEY CASES of exclusive possession : Street v Mountford (1985); Aslan v Murphy (1990): exclusive possession – the wording of agreement doesn’t matter as long as it fulfills three elements of lease. Sham agreement cases: Aslan v Murphy (Nos 1 and 2); Duke v Wynn [1990],Skipton BS v Clayton (1993). AG Securities v Vaughan (1990) (no win); Antoniades v Villiers (1990) (win): whether shared occupation gives rise to separate license agreements or a single, joint tenancy is to be determined by a close examination of the facts of each individual case.

Caes: Longrigg Burrough & Trounson v Smith [1979] and Javad v Aqil [1991], Prudential Assurance Co Ltd v London Residuary Body [1992].  Tenancy at sufferance: exists where a tenant remains in possession of land after the expiry of a lease without the consent or disapproval of the landlord: Wheeler v Mercer (1957).  ‘Non-proprietary’ tenancy: Bruton tenancy arises when a tenant is granted exclusive possession of a property under a contractual agreement, even if the landlord does not own or have a leasehold interest in the property. Based on Bruton v London and Quadrant Housing Trust [2000] based solely on the agreement between the parties, not on any proprietary rights - same landlord and tenant relation. Key cases- London Borough of Islington v Green [2005], Kay v Lambeth [2006], London Development Agency v Nidai [2009], Mitchell v Watkinson [2013]. Formalities for legal lease: The effect of s. 52(1) LPA 1925 requires that a deed is used to create a legal leasehold estate. To be a deed, a document must comply with S1 LP(MP)A

  1. 3 years or more –deed. 7 years or more- register at land registry. But important exception – s. 54(2) LPA 1925 (applies to periodic tenancies - Hammond v Farrow [1904] ). S54 LPA 1925 – creation of interests by Parol. Leases for a term of 3 years or less (a notice entered on the Charges Register(s. 33(b) of the LRA 2002) and constitutes overriding interest). At a market rent. That take effect in possession. Not for a fine or premium. Equitable leases: created when - where there is an enforceable agreement to grant a lease (complied with 2 LP(MP)A 1989 for man than three year lease), but no executed deed; or where a deed has been attempted but the ‘legal’ formalities have not been met (e.g. no valid witness), Where the registration requirements of LRA 2002 have not been met. Walsh v Lonsdale [1882].may not be enforceable against 3rd parties. Protection and registration of leases : over 7 year – equitable and s27 (1) (2)(b) and s4 (c) under 7 years – sch 3 para 1 LRA 2002 or s32 notice, 3 year or under – s33(b) or sch 3 para
  2. equitable leases – s 32 notice or sch 3 para 2.A lease of any duration that takes effect in possession 3 months after the grant requires registration - s. 27(2)(b)(ii) LRA 2002.A ‘discontinuous lease’ of any duration also requires registration - s. 27(2)(b)(iii) LRA 2002 & s4 (d). Landlord and Tenant covenants: ‘leasehold covenants’ (contractual obligation)promises made by the LL & T where there is no deed. Covenants can express or implied by statue (s 11 LT(E) act 1985)(RHWA 2016 s92(1)).The tenant’s obligations are usually framed as covenants BUT they can be framed as conditions.

Key cases: Covenants for quiet enjoyment (implied unless expressly excluded) - Owen v Gadd [1956 ].A covenant not to derogate from the grant (implied unless expressly excluded) - Grosvenor Hotel v Hamilton [1894]. Determination methods of lease:  Expiry: when tenancy ends & include 'security of tenure' provision. Could end earlier if there is a term which might lead to it.  Notice: fixed – can't break. Periodic – can be if it is acc to term or law. Joint tenancy – 1 can break by notice(Hammersmith and Fulham LBC v Monk (1992)). Notice must at least one full period Lemon v Lardeur [1946] - 1 month. Although a yearly tenancy requires 6 months' notice e.g., Prudential Assurance. Need date of expiry (Sidebottom v Holland) and form of Statutory provisions as to the service of notices (e.g. s.196 LPA 1925) do not apply unless the parties have expressly agreed this. notice (written) Protection from Eviction Act 1977.  (Forfeiture)  (Surrender)  (Merger) England: notice-s5 (1) PE Act 1977. Possession order – s21 HA 1988. S8 HA - notice only in case of breach. Where the AST is a periodic tenancy, the minimum notice period that a landlord must give the tenant, to lawfully terminate the tenancy, is 2 months. Wales: s173+174 – notice of six months. S168+169 – occupier give notice of 4 weeks There are broadly four remedies available to a tenant faced with a landlord’s breach of covenant:  action for damages;  injunction;  specific performance;  recouping the cost of repairs from future rent.