Description Of A Lease From A License

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This question discusses whether a lease or a licence has been granted and it is important to distinguish a lease from a licence because they enjoy different rights. The former is granted property rights, in which the property can be sold and give away, and it can bind third parties of landlord’s reversion; the latter is only granted personal rights, which cannot bind purchases and not subject to special legislation, for example, the Rent Act. In Street v Mountford, has established three hallmarks of tenancy in distinguishing a lease from a licence, there must be exclusive possession; for a term certain; at a rent. Moreover, having a correct formality is vital when creating a lease. Therefore, this essay will briefly mention the requirements of certain lease first, then the scenario will be discussed under the three hallmarks in Street. If a valid lease is formed, a correct formality must be established. The Law of Property Act (LPA) 1925, s. 52 sets out the general rule of formality for legal lease, which must be a deed for three years or more and satisfied requirements for deed listed at s. 1 Law of Property (Miscellaneous Provisions) Act 1989. However, there is an exception, under s. 54 (2) LPA 1925, if the deed is less than three years, this can be created by parol. When the formality of lease are not followed correctly, the lease will be void, however, an equitable lease might be formed by binding contracts. For example, in Walsh v Lonsdale, there was no deed formed,
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