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A woman occupied a shop under a two-year lease. At the end of the term, the lease was renewed for a further two years. The woman continues to occupy under the new lease. The new lease was made by deed and its provisions made no reference to s.62 of the Law of Property Act 1925. The shop has an external storeroom at the rear, which is owned by the landlord. Although it is not included in either lease, the woman has always used it to store stock. At the beginning of the original lease, the landlord said he was happy for the woman to do this, as long as she kept the storeroom tidy, because he also uses it for storage. Yesterday, the landlord revealed his plan to demolish the storeroom. The woman wants to prevent this by establishing that she has the right to use the storeroom.
Does the woman have an enforceable easement to use the storeroom?
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Under Section 62 of the Law of Property Act 1925, when a new lease is granted, it can convert certain licences into legal easements unless explicitly excluded. In this case, the woman's use of the storeroom began as a licence with the landlord's permission. However, when the lease was renewed by deed, this existing use can be converted into an easement because the provisions of the new lease made no reference to excluding Section 62. Therefore, the woman's previously informal right to use the storeroom has now potentially become an enforceable legal easement.
Key Point: This question highlights the operation of Section 62 of the Law of Property Act 1925, which can convert certain informal licences into legal easements upon the renewal of a lease, provided the lease does not explicitly exclude such conversion.
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