Lease hold Essay Example | Topics and Well Written Essays - 1500 words

Lease hold - Essay Example Laws usually govern granting a lease and certain order is followed when creating them (Great Britain parliament, 2000). Different leases require different sorts of agreements. A lease has specific elements that must be put in place for it to be valid. It also has specific requirements for creation of a valid lease. The elements of a lease A lease has specific elements that weigh heavily on the contracts overall acceptability. These elements must be considered during creation of an agreement between the property owner and the tenant as stipulated by the law. Exclusive possession This is a very essential part of a lease .It forms the backbone of a lease and therefore without it, there can be no lease. Exclusive possession is that right of the leaseholder to utilize the property with exclusion of all the other individuals including the property owner (John, 2000). The occupier must have a right to exclusive possession to use the premises leased, though this should not be a conclusive pr oof that the leaseholder has a lease. If denied exclusive possession then the leaseholder is right to use the premises, do not amount to a lease. Exclusive possession gives the tenant the right to exclude everyone else including the property owner from the premises except on an agreed case. ... Certain/specific term/period The start of a period in a lease must be clear. It should be me4ntioned in an agreement if not it will be deemed to commence immediately. In cases where an individual has an agreement for a future lease, then it is void unless clear at what date it is to start from an express term in the contract or by inference. A periodic tenancy stating that the property owner would not give notice to quit until when ready to redevelop the land is stipulated. Through this, the tenant has a sense of security and the property owner has ability to regain possession of the premises when needed. It is acceptable for a period of tenancy to restrict the property owners right to give notice unless for a specified purpose during a stated period. The maximum duration of a lessee must be certain. The law of property act provides that, a lease stated to take effect more than two years from date of agreement is void and any contract purporting to create such a term is void. It is n ot enough to specify a period. A beginning date and exact ending date must be stated. The time to vacate should also be clearly stated. Term less than that of a grantor An owner in fee simple can grant a lease of his premises for any term since the fee simple is effectively perpetual. A fee simple owner has the right to grant a lease to a tenant for many years like up to 9,000 years. There can be more than one term of years in one fee simple estate in a single piece of land. A tenant can grant a lease of the premises called a sublease to a subtenant .This can only happen if the sublease will last for a shorter period than the original lease from the property owner. The subtenant can also grant a further lease of the same premises