The definition of lease according to S.

205 (xxvi) LPA 1925, states that terms

of years absolute means terms of years liable to determination by notice and
includes a terms for less than a year, or for a year or years and a fraction of a
year or from a year to year.
Bruton v London Quadrant Housing Trust, a lease is a right made in a
contract to occupy someone elses land for a set period of time. For example, A
made an agreement with me to occupy part of my land for 4 years in return for a
monetary payment. This is known as renting or leasing my land.
Street v Mountford - Lord Templeman identifies three essential qualities of
a lease, which gives a person the right of exclusive possession of land, for a
term, at a rent.
Exclusive possession
Exclusive possession means the right to resist anyone coming onto the land,
including the landlord. Shell-Mex and BP Ltd v Manchester Garages Ltd
agreement allowed MG to use Shells garage to sell petrol. MG not granted with
exclusive possession because Shell still had rights of possession and control.
Shell could decide on the layout and move storage tanks.
Somma v Hazelhurst - Somma had given Mr Hazlehurst and his partner the
use of a room. They paid weekly rent and received no service from the landlord.
The agreements that each party sign were called licences and Ms Somma also
reserved rights to accommodate anyone with them. The court looked at the
parties expressed intentions and held that what had stated in the agreement is
licence.
Street v Mountford - Street granted Mrs Mountford the right to occupy the
rooms for a certain rent. The terms allows Street to enter the room at any time to
inspect or carry out maintenance and disallow any other person other than Mrs
Mountford to occupy without permission. The agreement is again called licence.
However, the courts found Mrs Mountford had a lease, despite the agreement
was called a licence and overruled Somma. Lord Templeman looking
objectively.
Aslan v Murphy it didnt matter that the landlord kept a key. What really
mattered was why he wanted to keep a key and what he used it for. (Enter in
case of emergency?)
Exclusive occupation the only one living there but you cannot resist the
entry of everyone. Having exclusive occupation doesnt amount to exclusive
possession.
Certain Term
Duration of the lease is fixed and known at the outset of both parties. An
uncertain term is when it is not certain how long the lease will last. Lace v
Chantler a lease was granted for the duration of the war. Nobody knew how
long the war will last, the lease term was not certain therefore invalid.
Ashburn Ansalt v Arnold as long as the parties knew of the event which
would bring the lease to an end, even if they didnt know when it will be, but it is

a certain term. (Overruled by Prudential Assurance Co Ltd v London

Residuary Body, confirmed Lace as good law)
Rent
Payment does not necessarily have to take the form of money and the Law of
Property Act 1925, states that you can have a lease or a tenancy without any
rent
or
consideration.
Street v Mountford. qxx

May have the 3 essentials but still no lease

No ITCLR even if there is rent paid

Cobb v Lane the owner allowed her brother to occupy a house rent-free. There
was no ITCLR and accordingly the brother did not have a lease.
Heslop v Burns Mr and Mrs Burns occupied rent-free accommodation in a
house owned by a benefactor who had taken pity on their impoverished
circumstances. No itclr = no lease.
Act of generosity/friendship
Eg: let her stay in a spare room. Marcroft Wagons Ltd v Smith, the tenant
died and her daughter was allowed to remain the house through the generosity
of the landlord. While accepted rent, the court held that there is no lease as his
conduct showed an act of kindness, not an intent to form a legally binding
contract.
Service occupancy
Where the occupation arises through employment this is likely to create a licence
as oppose to a tenancy. To determine if an occupation is one of service, the test
applied is whether the servant is required to occupy premises in order to better
perform his duties as a servant
Norris v Checksfield - Norris employed Checksfield as a mechanic. He later
offered him accommodation in a bungalow and extended his employment to
coach driver. The occupation in the bungalow would mean he would be readily
available to drive the coach. Norris later found out that Checksfield was
disqualified from driving and dismissed him and sought an order for possession
of the bungalow. It was a service occupancy, no lease, use of the bungalow came
to an end when employment ended.
Lodger
A lodger receives services from the owner that are personal to the occupier:
provisions of meals, laundry etc. Owner is able to enter when he wishes in order
to carry out these services, the lodger can never claim exclusive possession,
therefore no lease.

Abbeyfield Society Ltd v Woods occupier of a room in an old peoples home

did not have a lease because meals were provided and there was a resident
housekeeper.
If claimant falls onto one of those exceptions above, then there is no
lease.
If you have permission to occupy anothers land and you do not meet the
requirements of a lease, you have a licence and any money paid in return for
permission to occupy the land is consideration but not rent. When no
consideration is given for the permission to be on the land, it is called bare
licence just like a postman. If theres a consideration, itll be called as contractual
licence for example a cinema, where you pay for the privilege to be in the
premise.
It is important to distinguish between a lease and a license. First, a lease is a
proprietary right in the land and is capable of binding a person who buys the land
that is subject to the lease. A contractual licence is not a right in the land. It is a
personal claim binding only on the parties who made the original agreement.
Secondly, a lease cannot be withdrawn in a breach of contract by the landlord
because it is a contract of specific performance. On the other hand a contractual
licence can by withdrawn at any time at a reasonable notice.
Lastly, a lease provides you statutory protection against an unreasonable rent
increase such as Rent Act. However, licence doesnt come under any form of
statutory protection because they are simply permissions to occupy land.
As exclusive possession is the hallmark of a lease, whether you have a lease or a
licence is mainly determined therefore by whether or not you have exclusive
possession.
Pretence Clause
Aslan v Murphy out of the accommodation for a period of time every day
still a lease
Crancour v Da Silvasa cannot occupy between 10.30 to midday owner
retained absolute right of entry for carrying out management and cleaning
pretences still a lease
Joint tenancy
If two or more people take a legal lease and satisfy the four unities of possession,
interest, time and title, they will hold legal lease as joint tenants. Has exclusive
possession. Antoniades v Villiers couple entered into separate agreements
called licences landlord reserved himself the right to introduce other parties
into the double bed with the couple. Pretence a lease
AG Securities Vaughan 4 parties signed different licence agreements on
different days, so the unities of time and title were missing. no exclusive
possession, only have exclusive occupation.