Once PFI becomes registered they could then resist Tenants lease o Registered

Once pfi becomes registered they could then resist

This preview shows page 32 - 35 out of 36 pages.

(PFL) is therefore bound by the lease. Once (PFI) becomes registered they could then resist (Tenant)’s lease.oRegistered Legal Interest with Notice:If (PFL) is registered (and has/could have had notice of lease), they would besubject to (Tenant)’s lease due to having constructive notice of the leaseunder s 42(1)(d) and the rule in Hunt v Luck.oRegistered Legal Interest with No Notice:While (PFL) did not have notice of (Tenant)’s lease at the time he took hisinterest, even if he had done a more thorough inspection prior to settlementhe would not have discovered (Tenant) in occupation meaning that he didnot have constructive notice of the lease.Therefore (PFL) would not be subject to (Tenant)’s lease.32
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OTS Unregistered Lease: 3+ years, Written no Deed, Possession & Best RentMake sure (Owner) is empowered to lease the land (Tenant)’s lease is for (?) years and under s23B should have been in the form of a deed inorder to create a legal leasehold interests.An exception to this is s23D(2) which could apply as (Tenant) has a written lease not in deed form: Dockrill v Cavanagh . s23D(2) of the CA allows for the creation of written interests in land that are not in the form of a deed by way of lease if the conditions in 23D are met. These include that the lease must be at the best rent, the term of the lease (including any option) must not exceed 3 years and the lessee must have taken possession: Long v Tower Hamlets London Borough Council This includes a right to immediate possession: Haselhurst v Elliiot While (Tenant)’s lease has taken effect in possession and best rent is being paid, the term of the lease is (?) years (? years + ? year option) which is longer than the 3 years. (Tenant’s) lease therefore cannot satisfy the short-term tenancy exception in s23D(2). The lease would appear however to be an agreement which is specifically performable so it would be equitable as per Walsh v Lonsdale . Therefore (Tenant)’s Equitable Interest vs (PFL)’s Interest: o No Interest: (PFL)’s interest is void. (Tenant)’s lease wins. o Legal or Equitable Interest with Notice: (PFL) would then be treated as having constructive notice of the lease as they never bothered to inspect the land but would have become aware of (Tenant) had they taken reasonable steps: Hunt v Luck Therefore despite (PFL)’s legal/equitable interest, it would not have defeated Garry’s equitable lease. Therefore (Tenant)’s lease wins. 33
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OTS Unregistered Lease: Under 3 years, Written but no Deed, Possession & Best Rent Make sure (Owner) is empowered to lease the land s23D(2) applies here as (Tenant) has a written lease not in deed form: Dockrill v Cavanagh . s23D(2) of the CA allows for the creation of written interests in land that are not in the form of a deed by way of lease if the conditions in 23D are met. These include that the lease must be at the best rent, the term of the lease (including any option) must not exceed 3 years and the lessee must have taken possession: Long v Tower Hamlets London Borough Council
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