The original term should be treated as having a term commencing on the date of the grant of the lease, ie nine and a half years. This is on the basis of the judgment in the High Court in Bradshaw v Pawley, in which Sir Robert Megarry V-C held (at 276 and 277): 'It is well settled that a lease cannot retrospectively vest an estate in the lessee. If today a lease is granted for seven years from this day a year ago, no term of seven years is brought into being, but only a term of six years from today…no

A company may grant a power of attorney, enabling an individual to execute any instrument (including a lease) with his own signature and do any other thing in his own name by the authority of the donor of the power (section 7 of the Powers of Attorney Act 1971). This means that an individual can enter into a lease including one by deed on behalf of a company utilising a power of attorney. It appears from this scenario that the company is the lessor, with the individual buyer being the lessee. A donee of a power of attorney may be restricted in terms of the

This question raises the pitfalls into which parties to a lease might unwittingly fall when the contractual term comes to an end but the tenant remains in possession to the extent that life almost carries on as normal. When a lease has the protection of Part II of the Landlord and Tenant Act 1954 (LTA 1954), there are certain restrictions upon how it can be brought to an end. Although such a tenancy can be brought to an end by surrender on the part of the tenant, any agreement into which the parties

It is not clear how, or between whom, the wayleave has arisen. However, assuming that the wayleave has been entered into with a utility company or a telecommunications operator under the relevant statutory powers/rights, this still does not alter the essential characteristic of a wayleave, namely that it is a type of contractual licence granted by a land owner to a utility company or a telecommunications operator permitting the

This Q&A considers the process for the merger of title at HM Land Registry following a transaction between the owner of the freehold and leasehold estates of a particular piece of land. What is merger? A lease terminates as a result of merger when both the lease and the reversion on that lease become vested in the same person. However, the position in equity is different. Where the reversion and the term of years granted by the lease are held by the same person in the same right, the question of merger is governed in equity by the intention

The dissolution of a limited company results in its property (which includes leasehold interests) vesting in the Crown as bona vacantia (section 1012 of the Companies Act 2006 (CA 2006)). Bona vacantia is administered by the Treasury Solicitor. The Crown, acting through the Treasury Solicitor, will decide whether to disclaim property that has been vested in it within a period of three years (CA 2006, s 1013). Disclaimer of a leasehold interest has the effect of terminating the lease (although if there are guarantors or former tenants with ongoing liability the lease is deemed to continue for those purposes only). The Crown does not accept liability under any tenant covenants including in respect of the payment of rent, although

Ground rent demand Before commencing an action for recovery of rent, the landlord must ensure that they comply with any terms of the lease which are a condition precedent to recovery. See Commentary: Lease requirements: Atkin's Court Forms [19]. In any event, in the context of a long residential lease, under section 166 of the Commonhold and Leasehold Reform Act 2002 (CLRA 2002), a tenant is not liable to make a payment of rent unless the

A commercial lease for a term of 125 years which specifically requires the leaseholder to demolish the commercial property and construct a residential dwelling is unusual. Ordinarily, if land is to be developed, the developer will acquire an interest in the land (such as by way of a 125-year lease) with agreement from the landlord that the land can be developed, which might include contractual obligations to convert the land to residential use collateral to the lease. Such a lease would not be a residential lease, as the relevant property is not residential.

The terms of the lease are the first place to start to determine liabilities and obligations of the landlord and the leaseholder. Usually leaseholders will have an obligation pay service charges. Section 18 of the Landlord and Tenant Act 1985 (LTA 1985) sets out the definition of service charges as an amount which is payable by a leaseholder. The two key points are: • it is a charge payable towards services, repairs maintenance, improvements or insurance, and • it is variable Therefore, major works could be service charges if the lease allows the landlord to recover the costs from the leaseholders. In the above scenario if a leaseholder is liable to pay towards the costs of the major works under the lease then on the face of it they should pay. However, there are

The process for calculating the transferable nil rate band (TNRB) is as follows: Step One: Find out the nil rate band (NRB) threshold in place at the time of A's death. A table of historical NRBs is available on HMRC's website. Step Two: Calculate the chargeable transfer on A's death. This will be the value of A's estate that passed to a non-exempt beneficiary and was not otherwise exempt or relieved. Step Three: Calculate the percentage of the NRB unused on A's death by deducting the figure obtained for Step Two from that reached in Step One. If the difference is a negative figure, then there

A legal charge provides notice to the world of a security enforceable against the equity in the property against which it is secured (or, where there is more than one owner, against the interest of the person or persons in the property). The purpose of such a charge is to protect the interest of the creditor and, subject to there being sufficient equity in the property, the charge holder is entitled to be paid the sums secured in the order of priority of the charge. Most modern charges or mortgages will contain the express power to appoint a receiver. In default of such a provision, it is likely to be possible, in the event that monies

We have assumed that: • the legal charge was executed as a deed and grants a charge by way of legal mortgage over the property • there is a mortgagee able to appoint a receiver pursuant to the legal charge Certain dispositions of a registered estate are required to be completed by registration at HM Land Registry (HMLR); this includes the grant of a legal charge (section 27(2)(f) of the Land Registration Act 2002 (LRA 2002)). This applies to all types of chargors including individuals, companies and partnerships. Pursuant to LRA 2002, s 27(1), a charge takes effect as an equitable charge until it is registered at HMLR. For the different effects of a legal charge