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KembaraXtra – Legal Terms – Parol Lease
A parol lease is a lease created orally rather than by deed or written instrument.
For a parol lease to be legally valid, it must take effect immediately in possession, be for a term of less than three years, and be granted at the full market rent.
Certain periodic tenancies may satisfy these requirements and therefore qualify as valid parol leases.
Parol leases form an exception to the general rule that leases must be created by deed to be legally enforceable.
This exception is recognized under section 54(2) of the Law of Property Act 1925.
A parol lease is a lease created orally rather than by deed or written instrument.
For a parol lease to be legally valid, it must take effect immediately in possession, be for a term of less than three years, and be granted at the full market rent.
Certain periodic tenancies may satisfy these requirements and therefore qualify as valid parol leases.
Parol leases form an exception to the general rule that leases must be created by deed to be legally enforceable.
This exception is recognized under section 54(2) of the Law of Property Act 1925.
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