Once pfi becomes registered they could then resist

(PFL) is therefore bound by the lease.
 Once (PFI) becomes registered they could then resist (Tenant)’s lease.
o Registered Legal Interest with Notice:
 If (PFL) is registered (and has/could have had notice of lease), they would be
subject to (Tenant)’s lease due to having constructive notice of the lease
under s 42(1)(d) and the rule in Hunt v Luck .
o Registered Legal Interest with No Notice:
 While (PFL) did not have notice of (Tenant)’s lease at the time he took his
interest, even if he had done a more thorough inspection prior to settlement
he would not have discovered (Tenant) in occupation meaning that he did
not have constructive notice of the lease.
 Therefore (PFL) would not be subject to (Tenant)’s lease.
32

OTS Unregistered Lease: 3+ years, Written no Deed, Possession & Best Rent
 Make 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 in
order 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

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
