A Certain Term?

How can you tell a monthly tenancy from a 90-year lease? It is harder than you might think — a recent case went all the way to the Supreme Court to find the answer.

It is a rule of law that the term of a tenancy must be certain or capable of being rendered certain at the outset. In a periodic tenancy this rule is satisfied by each party having the right to terminate at the end of any period. If the rule is not satisfied then the arrangement cannot be a tenancy but can only be a contractual licence, so that the tenant has no right to remain if the landlord sells the property. A case which came before the Supreme Court in November highlights the difficulties the rule can cause and led to the court calling for Parliament to abolish the rule.