This section is from the book "Real Property, An Introductory Explanation Of The Law Relating To Land", by Alfred F Topham. Also available from Amazon: The New Law Of Property.
By the Conveyancing Act, 1881 (s. 65). - When a person holds a term of years which (1) was originally created for at least 300 years, and (2) has at least 200 years still to run, and (3) is subject to no rent, or to a rent of no money value, and (4) is subject to no trust or right of redemption in favour of the reversioner, the tenant may by executing a deed poll enlarge the term into a fee simple.
Note that until he exercises this right he only has a term of years, which is personal property: but when he has exercised it he gets a fee simple, which is real property.
A rent of one silver penny has been held to be a rent of no money value (t); but a rent of 3 shillings prevents the tenant from enlarging his term (u).
(s) For the full text of this section, see p. 310. The only person who can now he protected by such a term is a bona fide purchaser for value, and he can only claim such protection if the persons who held the legal estate in the term in 1845 would now be holding it in trust for him if the term had not ceased. Sugden, "Vendors and Purchasers," 14th edition, pp. 622, 623. Plant v. Taylor, 7 H. & N. 211, p. 236.
(t) lie Chapman & Hobbs (1885), 29 Ch. D. 1007.
(u) Be Smith & Stott, ibid., p. 1009 (n).
FORM OF A LEASE (x)
This is not intended as a precedent to be copied, but is merely an example of an existing lease.
this Indeature made the third day of May 1906 Between AMBROSE FITZGERALD of Kingslear Felpham in the County of Sussex Esquire (hereinafter called the Lessor) of the one part and JAMES ARTHUR SMITH of 59 Welbeck Street Hampstead in the County of London Builder (hereinafter called the Lessee) of the other part Witnesseth that in consideration of the rent and Lessee's covenants hereinafter reserved and contained the Lessor Doth demise (y) unto the Lessee his executors administrators and assigns All that (z) Messuage or tenement known as No. 303 High Street Hampstead aforesaid together with the shop and garden ground usually occupied therewith (a) To hold the said premises hereinbefore expressed to be demised with the appurtenances unto the Lessee his executors administrators and assigns from the 24th day of June 1906 for the term of twenty-one years (h) Yielding and paying therefor yearly during the said term the rent of £97 sterling by equal quarterly payments on the 25th day of March the 24th day of June the 29th
(x) The student should read through this form in order to render the matters dealt with in the foregoing chapter more tangible and interesting.
(y) The word "Demise " is important, as it implies a covenant for quiet enjoyment. See p. 287.
(z) The description of the property is called the " parcels."
(a) This is called the " habendum."
(b) This is called the "Reddendum." day of September and the 25th day of December the first of such payments to be made on the 29th day of September next and the last payment to be made in advance seven days before the expiration of the said term And the Lessee doth hereby for himself and his assigns covenant with the Lessor in manner following that is to say That he the Lessee his executors administrators and assigns will during the said term pay the rent hereby reserved at the times and in manner hereinbefore mentioned And also will pay all taxes rates duties assessments and outgoings (c) whatsoever whether parochial parliamentary or otherwise now charged or hereafter to be charged upon the said demised premises or any part thereof or upon the rent thereof or any part thereof or upon the Lessor his heirs or assigns in respect thereof except landlord's property tax (d) And also will during the said term keep the said demised premises and all fixtures and additions thereto in good and substantial repair (e) and condition And also will in every third year of the said term paint all the outside woodwork and ironwork belonging to the said premises with two coats of proper oil colours in a workmanlike manner And also will in every sixth year of the same term paint the inside wood iron and other works now or usually painted with two coats of proper oil colours in a workmanlike manner and also wash stop whiten or colour such parts of the said premises as are now plastered And also will during the said term keep insured (f) the said
(c) The word "outgoings" is very wide and includes the cost of reconstructing the house or drainage under the order of a local authority. Stockale v. Ascherberg,  1 K. B. 447.
(d) Any agreement by a tenant to pay property tax or tithe rent charge is void. Lord Ludlow v. Pike,  1 K. B. 531.
(e) The lease usually contains an express covenant to repair, although apart from express covenant the tenant would be bound to do so.
(f) If the landlord is to insure the property, the lease should provide that in case of destruction by fire the rent shall cease to be payable unless the house is rebuilt within (say) 3 months. Otherwise the tenant must premises hereby demised to the amount of £900 at least in some respectable fire insurance office and will upon the request of the Lessor or his heirs or assigns or of his or their agent show the receipt for the last premium paid for such insurance for every current year and as often as the said premises hereby demised shall be damaged by fire or other accident insured against all the moneys which shall be received by the Lessee his executors administrators or assigns in respect of such insurance shall be expended by him or them in rebuilding or repairing the said demised premises or such parts thereof as shall be so damaged And it is hereby agreed that it shall be lawful for the Lessor his heirs and assigns and all persons authorized by him or them at all reasonable times during the said term to enter the said premises to examine the condition of the said premises and further that all defects and wants of reparation contrary to any of the covenants hereinbefore contained which upon any such view shall be found and for the amendment of which notice in writing shall be left at the premises the Lessee his executors administrators and assigns will within three calendar months next after every such notice well and sufficiently repair and make good And also that the Lessee his executors administrators and assigns will not use or suffer to be used the said premises or any part thereof as a shop warehouse or other place for carrying on any trade or business whatsoever or otherwise than as a private dwelling-house without the consent in writing of the Lessor his heirs or assigns And will not without the like consent assign (g) continue to pay rent though the house is destroyed. Baker v. Holtpzaffell (1811), 4 Taunt. 45. As to the application of the insurance money when the tenant insures, see Leeds v. Cheetham (1827), 1 Sim. 146, and (in London) 14 Geo. III. c. 78, s. 83.
(g) This is important, as no relief will usually be given to the tenant if forfeiture is incurred by a breach of this covenant.
or underlet the said premises or any part thereof Provided always and it is hereby expressly agreed by and between the parties hereto that such consent as last aforesaid shall not he withheld without some reasonable objection (h) to the respectability or responsibility of the proposed assignee or sublessee And further that the Lessee his executors administrators or assigns will at the expiration or other sooner determination of the said term peaceably surrender and yield up unto the Lessor his heirs or assigns the said premises hereby demised with the appurtenances together with all buildings erections and fixtures now or hereafter to be built or erected thereon in good and substantial repair and condition in all respects Provided always (i) and it is expressly agreed that if the rent hereby reserved or any part thereof shall be in arrear for twenty-one days (whether lawfully demanded or not) or if there shall be a breach of any of the Lessee's covenants herein contained or if the Lessee his executors administrators or assigns shall while the said premises shall remain vested in him or them be adjudicated bankrupt or if his or their interest shall be taken in execution then and in any of such cases, it shall be lawful for the Lessor his heirs and assigns to re-enter upon the said premises and thereupon the said term shall absolutely determine And the Lessor doth hereby covenant (k) with the Lessee that he may peaceably enjoy the said demised premises for the said term hereby granted without any interruption or disturbance (except in accordance with the power of entry to view or with the proviso for re-entry hereinbefore contained) from or by the
(h) If the landlord refuses his consent unreasonably, the tenant may assign without consent. Bates v. Donaldson, , 2 Q. B. 241.
(i) This is a proviso for forfeiture, as to which see p. 199.
(k) This express covenant is put in to exclude the implied covenant which arises by use of the word " demise." See p. 287,
Lessor his heirs or assigns or any other person or persons lawfully claiming by from or under him them or any of them In witness whereof the said parties to these presents have hereunto set their hands and seals the day and year first above written.
Witness to the Signature of Ambrose Fitzgerald - Peter Brown of 59 Oddfellows Row E.G. Clerk.