Certainty of term: letting 'until the land is needed' to a company (Berrisford v Mexfield)
In 2024 a district council let a yard in Stoke-on-Trent, England, to Kestrel Storage Ltd, a company, by an agreement stating that the letting would last 'until the council requires the land for the extension of its depot'. Kestrel took exclusive possession and has paid rent monthly ever since, as the agreement required. The council has no present plans to extend the depot.
Which of the following best describes the legal effect of the agreement?
Choose one answer to see the reasoning.
Worked answer
Correct answer D: It cannot be a lease for the stated term because its maximum duration is uncertain, but Kestrel holds a periodic tenancy from its possession and monthly rent payments.
THE RULE TO REMEMBER
A lease must have a term of certain maximum duration; a letting until an uncertain event fails as a term, though a corporate occupier paying periodic rent holds a periodic tenancy.
Certainty of term: letting 'until the land is needed' to a company (Berrisford v Mexfield)
A lease must be for a term whose maximum duration is certain from the outset. In Prudential Assurance Co Ltd v London Residuary Body [1992] 2 AC 386, as explained by the Supreme Court in Berrisford v Mexfield Housing Co-operative Ltd [2011] UKSC 52, a letting 'until the land is required' by the landlord for road widening was held incapable of creating a tenancy for that term, because it was of uncertain, potentially perpetual, duration. Kestrel's agreement is of the same kind. However, Kestrel took exclusive possession and has paid rent periodically, so a periodic tenancy arises by reference to the rent period. In Berrisford the Supreme Court held that an individual could instead take a 90-year term under s.149(6) LPA 1925, because the common law would have treated the arrangement as a tenancy for life; but the Court noted that this route is available only to an individual, not a corporate tenant such as Kestrel.
Why A is wrong: Clarity about the terminating event is not enough; the maximum duration must be certain at the outset.
Why B is wrong: The 90-year conversion under s.149(6) applies only where the tenant is an individual, not a company.
Why C is wrong: A periodic tenancy arises from exclusive possession and periodic rent; a fixed end date is not needed for a periodic tenancy.
Why E is wrong: A tenancy for life can be held only by an individual; a company cannot hold a lease for life.
A little more practice done.
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