Leases and reversions

Question 1

An owner grants a lease of his warehouse to a logistics company for a term of thirty years, the tenant having fitted out the building at its own expense. Fourteen years into the term the owner decides to realise his investment and sells the property to a buyer who is looking for an income stream. The buyer takes with the tenant in occupation, inspects the lease before committing, and signs nothing at all with the tenant. Two months after completion the tenant asks the buyer whether it should now be paying its rent to him.

Consider the following statements.

1. (i) The lease ends on the sale, the tenant's agreement having been with the former owner.
2. (ii) The buyer takes subject to the lease.
3. (iii) The buyer may enforce the lease against the tenant.
4. (iv) What the seller sold was the reversion.

1. A. (ii) and (iii)
2. B. (i) and (iv)
3. C. (ii), (iii) and (iv)
4. D. (i), (ii), (iii) and (iv)

Question 2

What did Mr Ganesh hold in respect of the ground floor during the currency of the bakery's lease, and what has he now agreed to sell?

Which statement is correct?

1. A. He held the reversion, and it is the reversion that passes to Mr Pillai on completion.
2. B. He held nothing during the lease, and only the upper floors pass to Mr Pillai on sale.
3. C. He held a remainder, being the interest of a person entitled after a carve-out ends.
4. D. He held the reversion, which ends on the sale and revives in Mr Pillai on expiry.