A lease of a house is basically a contract between the lessor (landlord) and the tenant, in order to let the person living in it to use it as he wishes. There are strict regulations on the basis of which these contracts are formulated. The laws governing leasehold properties are extremely restrictive and cover a vast area. Thus, it is very important that the lessee is well aware of these regulations.
The lease of a house basically means getting the right to occupy immovable property for the duration agreed in the contract. This usually takes the form of either a lease/ Renting period. During the lease/ Renting period, the tenant pays the landlord a certain amount of money as rent, which is the cost of operating the property and also includes the cost of any improvements that the landlord might decide to implement. During the lease/ Renting period, the tenant is liable only for the expenses of running the property, while the landlord has complete control over all other aspects, such as the tenants’ appliances, maintenance and safety.
The main reasons why people enter into leases are to avail of the property for rent for personal or commercial purposes. It could also be related to the chance of getting freehold ownership of the said property after the lease term expires. Generally, there are two types of leases, namely the Leasehold and the Ground Rent. A leasehold property is one in which the rent remains fixed throughout the entire lease term. In such a situation, the owner of the property does not necessarily gain exclusive possession of the property. On the other hand, a ground rent is one in which the tenant is liable to pay some form of rental income.
The situation of a lease in England differs from that in other parts of the country. A lease of a house in the UK comes with a number of protections that make it different. For example, a tenant has the legal right to renew the contract even if he decides to move out after two years. Similarly, an extension to the contract is also valid once the legal advisor has advised the owner to do so. Thus, a long lease is one in which the landlord has the legal right to increase the rent periodically, which is a completely legal right.
A licence to rent is another type of lease contract. Similar to a lease, licence to own a house comes with a number of protections. The owner of the property is legally allowed to attach his name to the house for as long as the licence is in force. He is also entitled to demand the rent from the lessee until the licence is terminated. Once the lease or licence is terminated, the lessee automatically becomes free of all obligations to the owner, and the landlord is left with a property that has legally been rented but not yet occupied. This scenario is completely different from that in which a lease or licence comes with a specific time limit.
A lease or licence to own is very similar to a lease, in that the tenant has the right to rent or own the property for a fixed period of time. However, there are a few important differences between the two. When the tenant vacates his property, the grantor (landlord) no longer owns it. With a lease, the tenant must first pay his monthly lease fees and dues, and then sign a binding contract allowing the landlord to sub-lease the property to a prospective tenant for a pre-determined duration of time. The lease therefore only binds the tenant for a fixed duration of time.
Permanent and long leases differ slightly from residential leases in that the lease is for a definite period of time and is legally enforceable against the landlord should the tenant violate the terms set out in the agreement. There are three common types of residential leases: short-term leases, medium-term leases, and long-term leases. A short-term lease is similar to a year-to-year lease, except that the tenant may renew the lease every year. A medium-term lease is a rental agreement for a specified number of months; however, during this time, the tenant is allowed to sub-lease the property to another person. Finally, a long-term lease is a lease with a clause that states that the tenant may buy the house after the end of the lease. Each type of lease has its own sets of rules and regulations, and tenants should consult an attorney to discuss what are needed in their situation.
Landlords also have the duty to disclose certain aspects of the property, both to the tenant and to others, prior to the tenant moving in. The disclosure requirement is intended to provide informed consent that allows the tenant to make reasonable accommodations. A landlord must also notify the tenant of any changes in the property, both permanent and temporary. In addition, the landlord must post notice of the new lease in a conspicuous place, in a place accessible to the tenants and others who may be affected by the change. Both written and oral notices are required.