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Leasehold Covenants
Simon Spurgeon
Track/Slide 7
Finally, before turning to look at leasehold covenants, we need to look at the various types of leases.
As has already been mentioned, it is possible to have both a fixed term lease and a periodic lease but
there are also other types of leases which may be created. A fixed term lease, as the name implies, is
a lease which is granted for a fixed period of time such as out previous example of a 99 year lease. A
periodic lease can either be expressly granted or can be implied such as a situation where a tenant
goes into possession of the land and pays the landlord rent. In those circumstances the period of the
lease will be based on the frequency of the rent payments and therefore the notice period the
landlord has to give to terminate the lease will generally speaking be equal to the period of the
lease. So for example if you go into possession of land and pay the landlord rent on a monthly basis
common law will imply a periodic monthly tenancy or lease and a landlord in order to terminate this
lease will need to give you one month’s notice. The exception to this general rule is where rent is
paid on a yearly basis and in this case the landlord will only need to give you 6 months notice. It is
also necessary to be aware of the various statutory protections that apply to different types of
tenancies. So for instance a minimum of 4 weeks notice is required to end a residential tenancy
under the Protection from Eviction Act 1977 and there are detailed restrictions on bringing a
business tenancy to an end under the Landlord and Tenant Act 1954.
A tenancy at sufferance will arise where there is no formal agreement between the landlord and
tenant. A common example of a tenancy at sufferance is where the tenant continues to occupy
premises after the expiry of a lease but without the landlord’s consent. Not having the landlord’s
consent is crucial to the operation of a tenancy at sufferance because if the landlord did consent to
the occupation then a tenancy at will would arise and if the landlord dissented or did not agree to
the tenant’s occupation they would be a trespasser. A tenancy at sufferance does not create a
formal tenancy and no rent is paid. The landlord can claim compensation for the use of the land,
what is called mesne profit spelled mesne. If rent was accepted then as we have seen this would
lead to the implication of a periodic tenancy. A tenancy at will means the tenant is occupying the
land with the permission of the landlord on terms that the tenancy can be terminated at any time by
the landlord. A tenancy at will leads to a landlord and tenant relationship and rent can be payable
under a tenancy at will.
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