II.   Instruments & Transactions

A Lease is a formal Instrument issued under the Corporate Securities standards of instruments and writing first formed under the Westminster laws of Great Britain from the 17th Century as a form of conveyance, transfer, or letting of lands or tenements or hereditements to another, for Term of Life, Years, or at Will, for a Rent reserved.

A Lease is a Form of Deed granting possession and use of property for a period of time in exchange for a specified rent. The one who grants the lease is called a lessor, while the one who is granted limited rights of use is called the lessee.

In regards to the general principles of valid Leases:

(i) All Leases of land or other corporeal hereditements are required to be made by deed, with the exception of leases at will or for a term not exceeding three years; and

(ii) It is essential that a Lease be for a less estate or term than the lessor has in the property, for if it comprises his whole interest it is a conveyance or assignment and not a Lease; and

(iii) If it is the intention of the parties is that the grantee is not to be entitled to exclusive possession of the property, the grant is a license and not a Lease; and

(iv) A Lease is equivalent to Equitable Title of ownership, whereby a Person may be granted rights of use and rights of occupancy, but never Legal Title.

A Lease may be fixed-term, periodic or at will:

(i) A Lease for years or at will is called a Chattel Interest;

(ii) Where a person who is himself a lessee grants a lease of the same property to another person for a shorter term, it is properly called an underlease or sublease or derivative lease.

(iii) A reversionary Lease is a lease which is not to take effect in possession immediately, but from the expiration or determination of a previous lease.

The common Elements of a valid lease are:

(i) The Names of the parties; and

(ii) The starting day and duration of the agreement; and

(iii) The specific property being leased; and

(iv) Conditions for renewal or non-renewal of lease; and

(v) Consideration such as a lump sum or periodic payment (rent) for granting use; and

(vi) Provision for any surety deposit and terms of its return; and

(vii) Default Conditions and Remedies for any breach; and

(viii) Specific Conditions particular to the type of property such as insurance, restrictive use.

Leases are generally prepared in two parts, known as the lease and the counterpart:

(i) The lease is executed by the Lessor alone and is kept by the Lessee; and

(ii) The counterpart is executed by the Lessee alone and is kept by the Lessor.

With reference to the right or authority under which a Lease is granted, they are made:

(i) Under a right or power incident to the Estate of the Lessor. Thus a tenant in fee has the power to grant leases for any term; or

(ii) Under a power of appointment or limitation to uses as where land is limited to A. and his heirs, to such uses as B. by demise appoint; or

(iii) Under statutory power such as the Settled Estates Act; or

(iv) By virtue of custom

Right of Redemption is the right of the tenant holding a lease for a reasonable period of time to make good any arrears in rent, without eviction, or even after dispossession make good any arrears and lawfully re-obtain possession of the property.  It is unlawful to include any clause on a lease or mortgage that claims a waiver of Right of Redemption.