The claim in a recent case arose in relation to whether the occupants of commercial premises had a right to a tenancy. The claimants argued that they were the lawful tenant of the premises pursuant either to a 10-year oral lease or a periodic tenancy. In either scenario, it was contended that the tenancy was a business tenancy, subject to and protected by security of tenure.
The court struck out the claim to a 10-year oral lease. It reasoned that leases of land for more than three years are void for the purpose of creating a legal estate unless made by deed. In addition, in order for there to be a valid contract relating to land, such a contract is required to be in writing in a document setting out all the terms which this was not.
However, the court found that the claimants had an arguable case for a periodic tenancy. The occupant had been in exclusive possession since 2012 paying rent, pursuant to quarterly demands. It is well established that a periodic tenancy may be created by inference where a person occupies land with consent and rent is demanded and paid by reference to a particular time period. Accordingly, the court held that this claim should proceed to trial.
Notwithstanding this slight glimmer of hope no doubt the tenant has learnt the importance of ensuring that you "get it in writing".
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
