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Limitation of Actions Consultation - Law Commission

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a third party who has dispossessed the tenant. 25<br />

The question <strong>of</strong> when the tenancy<br />

is terminated will, in general, be decided according to the relevant principles <strong>of</strong><br />

landlord and tenant law. 26<br />

6.14 Where the action is to recover land which is subject to a yearly or other periodic<br />

tenancy and there is no lease in writing, the determination <strong>of</strong> the tenancy, and<br />

therefore the accrual <strong>of</strong> the landlord’s right <strong>of</strong> action, will be deemed to take place<br />

at the end <strong>of</strong> the period <strong>of</strong> the tenancy, 27<br />

or, where rent is received in respect <strong>of</strong> the<br />

tenancy after this date, on the date <strong>of</strong> the last receipt <strong>of</strong> rent. 28<br />

The meaning <strong>of</strong><br />

“lease in writing” was examined in Long v Tower Hamlets Borough Council. 29<br />

Here<br />

the tenant took possession <strong>of</strong> the premises after endorsing a copy <strong>of</strong> a letter to him<br />

from the Council setting out the terms <strong>of</strong> the tenancy agreement. It was held that<br />

this was evidence <strong>of</strong> the tenancy rather than a “lease in writing”. To qualify, the<br />

document would have to create a leasehold interest in the land, being executed as<br />

a deed or fulfilling the requirements <strong>of</strong> section 54(2) <strong>of</strong> the <strong>Law</strong> <strong>of</strong> Property Act<br />

1925. 30<br />

6.15 Sometimes when a lease comes to an end, and the tenant holds over by remaining<br />

in possession, a new tenancy will come into effect, either by common law, or by<br />

the operation <strong>of</strong> statutes intended to give the tenant security <strong>of</strong> tenure. Where a<br />

new tenancy comes into existence at common law, simply by virtue <strong>of</strong> the landlord<br />

receiving rent, the nature <strong>of</strong> that tenancy will depend on the intention <strong>of</strong> the<br />

parties. 31<br />

If a periodic tenancy is created, section 15(2) <strong>of</strong> the 1980 Act will apply. 32<br />

Where statute intervenes, the position is less clear cut. In Jessamine Investment Co<br />

Ltd v Schwartz 33<br />

the Court <strong>of</strong> Appeal held that section 15(2) was capable <strong>of</strong><br />

applying to a statutory tenancy under the Rent Act 1968 (although Megaw LJ<br />

expressed some doubt). But in the case, for example, <strong>of</strong> a business tenancy with a<br />

fixed contractual term which is continuing by virtue <strong>of</strong> section 24 <strong>of</strong> the Landlord<br />

and Tenant Act 1954, it would seem unlikely that section 15(2) would apply. 34<br />

25 See paras 6.37 - 6.39 below in relation to situations where a squatter has dispossessed the<br />

tenant.<br />

26 See, eg, Woodfall: Landlord and Tenant, ch 17. See para 6.15 below in relation to “holding<br />

over”.<br />

27 Schedule 1, para 5(1).<br />

28 Schedule 1, para 5(2).<br />

29 [1996] 3 WLR 317.<br />

30 See also Moses v Lovegrove [1952] 2 QB 533, in which the Court <strong>of</strong> Appeal held that a rent<br />

book did not amount to a lease in writing.<br />

31 Javad v Mohammed Aqil [1991] 1 WLR 1007 (CA).<br />

32 See para 6.13 above. See para 6.17 below in relation to the position where a tenancy at will<br />

is created.<br />

33 [1978] 1 QB 264.<br />

34 But see P Walter and J Harris, Claims to the Possession <strong>of</strong> Land: The <strong>Law</strong> and Practice (3rd ed<br />

1997), p 617. Suppose that L grants T a lease in writing for 3 years from 1996, to which<br />

Part II <strong>of</strong> the Landlord and Tenant Act 1954 applies. The contractual term expires in 1999,<br />

but the tenancy continues by virtue <strong>of</strong> s 24 <strong>of</strong> the 1954 Act. It would appear that time<br />

would not run against the landlord until the continuation tenancy was terminated in<br />

accordance with the 1954 Act, even if, for example, T stopped paying rent in 2000. If, on<br />

97

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