Land Law - Leases
Land Law
Leases
1. Introduction
Leases in general may be the most valuable category of interest in land other than freehold estate. A lease may also constitute a legal estate. In some cases, such as flats, it may even replace freehold as the operational form of “ownership”. On the other hand, a lease is also a contract between two parties. It serves important social functions, sometimes much more than land ownership, and therefore has been receiving unyielding attention from the legislature since early 20th century.
The full technical name of a lease is a “term of years absolute”. However, unlike the counterpart in freehold, the “fee simple absolute in possession”, this full name carries very little meaning with it. A term of years absolute may be for less than a year, and it may be terminable on certain conditions (i.e. not absolute). Also noticeable is the fact that it is not required to be “in possession” (i.e. current). A reversionary or future lease may still be a legal estate, unlike a “future freehold”. The only meaningful part to be remembered is the word “term”, which will be explained below.
In some case the relationship or status created by a lease is also termed a “tenancy”. For most purposes these two words can be used almost interchangeably. However, some concepts traditionally described as tenancies may not be leases in the strict legal definition of the word.
Historically leases started as a purely personal interest between the landlord, or “lessor”, and the tenant, or “lessee”. If the landlord sold the land, the tenant had no claim against a successor in title. The law was later changed to recognise the changing nature and the importance of leases. For many centuries now leases have been accepted as proprietary interests, “chattels real”, capable of binding purchasers. However, in the last decade or so, there seems to be the emergence of a new suggestion, the possibility of a personal or non-proprietary lease again.
2.
Leases
1. Introduction
Leases in general may be the most valuable category of interest in land other than freehold estate. A lease may also constitute a legal estate. In some cases, such as flats, it may even replace freehold as the operational form of “ownership”. On the other hand, a lease is also a contract between two parties. It serves important social functions, sometimes much more than land ownership, and therefore has been receiving unyielding attention from the legislature since early 20th century.
The full technical name of a lease is a “term of years absolute”. However, unlike the counterpart in freehold, the “fee simple absolute in possession”, this full name carries very little meaning with it. A term of years absolute may be for less than a year, and it may be terminable on certain conditions (i.e. not absolute). Also noticeable is the fact that it is not required to be “in possession” (i.e. current). A reversionary or future lease may still be a legal estate, unlike a “future freehold”. The only meaningful part to be remembered is the word “term”, which will be explained below.
In some case the relationship or status created by a lease is also termed a “tenancy”. For most purposes these two words can be used almost interchangeably. However, some concepts traditionally described as tenancies may not be leases in the strict legal definition of the word.
Historically leases started as a purely personal interest between the landlord, or “lessor”, and the tenant, or “lessee”. If the landlord sold the land, the tenant had no claim against a successor in title. The law was later changed to recognise the changing nature and the importance of leases. For many centuries now leases have been accepted as proprietary interests, “chattels real”, capable of binding purchasers. However, in the last decade or so, there seems to be the emergence of a new suggestion, the possibility of a personal or non-proprietary lease again.
2.