Land Law

Henry signed a lease 5 years ago with Tom to lease a part of Henry's farm to Tom. The lease provides that the lease is for a fixed term of 5 years, and the rental payable to Henry is $5,000 per annum. Tom may build a house on the leased land, and it is the sole responsibility of Tom for the costs of any improvements. One of the "Special Terms and Conditions" says "When the lease expires, the landlord is entitled to take back the land with any fixture thereon. The tenant may only remove from the land his/her chattels."

Tom built a tiny home on the land at his own costs of $100,000. It was built on piles set into the ground. The floor joists were attached to the piles by stapled wire as is conventional. Electricity and plumbing were connected.

A recent valuation shows that the current market value of the farm is about $400,000 if the house is not included, or about $500,000 if the house is included. Henry wants to know if he can sell the land with the house, and if his old friend Eddie can fully recover his loan to him.

Advise on the issue, use legislation