Joined: 21 May 2005
Posted: Thu Apr 08, 2004 11:56 pm Post subject: Leasehold Estate - Ownership Interest held by Tenant
|Leasehold Estate refers to an ownership interest in property which a lessee or tenant holds through some kind of title from the lessor or landlord.
There are 4 types of leasehold estates:
Tenancy for years:
This kind of tenancy lasts for a fixed period of time - a week or even a year or more than a year. The duration is conditioned upon the happening of some event (for instance, until its time for harvesting crops). If the lease continues for more than a year, the lease should be executed in writing, in order to satisfy the Statute of Frauds.
This kind of tenancy can be terminated any time with agreement between the landlord and the tenant. The termination is known as surrender of the lease. If the term remaining on the lease at the time of surrender exceeds a year, then the surrender must be executed in writing.
Periodic tenancy having duration from year to year, month to month, or week to week is an estate that exists for a certain period of time determined by the term of the payment of rent. Often tenancy for years automatically becomes a periodic tenancy if the lease is not executed in writing although it exceeds a year. In this case, a rental period is equal to the time period between lease payments, but not more than a year.
The landlord can terminate the lease any time by sending a prior notice to the tenant. Usually a six month's notice is given to terminate a year to year tenancy. But a month's notice is given to end up a month to month tenancy.
Tenancy at Will:
This is a kind of leasehold where either of the landlord or the tenant may terminate the tenancy any time on reasonable notice. It occurs mostly in the absence of a lease. But in most residential tenancies, the landlord may not terminate the tenancy except for some cause, although there is no written lease.
By law, the tenancy existing at the will of the landlord only grants a similar right to the tenant. But a lease existing at the will of the tenant does not give similar right to the landlord.
Tenancy at Will is terminated by the operation of law if:
Tenancy at Sufferance:
- The tenant commits waste against his property.
- The tenant makes an assignment of his tenancy.
- The landlord transfers his interest in the property.
- The landlord gives the property on lease.
- The tenant or the landlord passes away.
Tenancy at Sufferance exists when a tenant possesses the property even after the lease has expired. The tenancy lasts till the landlord forces the tenant out of the property. The tenant however, should pay rent until the landlord forces him to move out any time without prior notice.
The landlord may impose a new lease on the holdover tenant. The new tenancy may exist from month to month or throughout a period equal to the period of the original lease. The new tenancy may be initiated with a higher rent, as decided upon by the landlord before the original lease has expired.