SDLTM14020 - Term of a lease: Leases for a fixed term: Example 1
The wording of a lease states that it is to be for a term of 25 years from and including 25 March 2005.
Under the Bradshaw v Pawley principle (refer to SDLTM14015), the term of the lease is either:
- the contractual term specified in the lease (25 years from and including 25 March 2005) or, if shorter,
- the period starting on the date of grant until the end of the contractual term (24 March 2030).
If the date of grant is 25 February 2005:
Contractual term under a): 25 years
Period under b): 25 February 2005 to 24 March 2030: 25 years 1 month.
As (b) is not shorter than (a), the term of the lease is taken to be 25 years.
The effective date of this lease is 25 February 2005 as this is the date it was granted.
If the date of grant is 25 May 2005:
Contractual term under a): 25 years
Period under b): 25 May 2005 to 24 March 2030: 24 years 10 months.
As (b) is shorter than (a), the term of the lease is taken to be 24 years and 10 months.
The effective date of this lease is 25 May 2005 as this is the date it was granted.
For further details and definition of effective date, refer to SDLTM07600 to SDLTM07750.