ABSTRACT
Leasehold interests are one of the two estates (along with freeholds) that are capable of existing at law or in equity (s 1 of the Law of Property Act 1925). In fact, the leasehold estate, whether it be equitable or legal, is one of the most versatile concepts found in the whole of the law of real property. Even the terminology of leases reflects the many purposes to which they may be put. The ‘term of years’, ‘tenancies’, ‘sub-leases’, and ‘leasehold estate’ are all synonymous and in terms of the legal rules governing their creation and operation the principles are the same, although one particular description may be more appropriate than another depending on the situation. So, for example, the term ‘lease’ is most often used for commercial or long-term lettings whereas the term ‘tenancy’ is used for ‘domestic’ or shorterterm lettings.
