Different ways in which land can be held (Nature of Land - Core principles of land law)- FS

Question 1

What are the two legal estates in land recognized under English law?

Answer 1

1. Freehold – known as “an estate in fee simple absolute in possession”, and
2. Leasehold – known as “a term of years absolute”.

These are set out in Section 1(1) of the Law of Property Act 1925.

Question 2

What is the legal definition and key feature of a freehold estate?

Answer 2

A freehold estate, referred to as “fee simple absolute in possession”, is the most complete form of land ownership. It grants indefinite rights to possess, use, and transfer the land.

Question 3

What is a leasehold estate and how does it differ from a freehold?

Answer 3

A leasehold estate is a time-limited right to occupy and use land, defined as a “term of years absolute”. It does not confer ownership of the land but allows possession for the term specified in the lease.

Question 4

What are the defining features of a fixed term leasehold?

Answer 4

A fixed term leasehold:

• Is granted for a specific contractual term,
• Automatically expires at the end of the term,
• Does not renew unless a new agreement is made,
• Is commonly used in commercial property due to economic predictability.

Question 5

What distinguishes a periodic tenancy from a fixed term lease?

Answer 5

A periodic tenancy:

• Renews automatically after each period (e.g., weekly, monthly),
• Continues until terminated by a notice to quit,
• Can arise expressly through agreement or implicitly through conduct (e.g., rent payments with landlord’s consent after a lease expires).

Question 6

Under what conditions can a periodic tenancy arise by implication of law?

Answer 6

A periodic tenancy may arise if a person occupies land and pays rent regularly with the landlord’s consent, even without a formal lease, or if a tenant remains after a fixed term lease has expired and continues to pay rent.

Question 7

What is a tenancy at will and how is it characterized?

Answer 7

A tenancy at will:

• Has no agreed term,
• Is terminable at any time by either party without notice,
• May be oral or written,
• Is typically used for short-term, informal arrangements and is not suitable for commercial leases.

Question 8

What is the legal significance of the term “fee simple absolute in possession”?

Answer 8

It describes a freehold estate that is:
* Unlimited in duration,
* Held by the owner in possession (immediate right to occupy), and
* Capable of being inherited or transferred freely.