Estates & Interests in Land

Question 1

The 2 types of legal estates in land.

Answer 1

Fee simple absolute in possession (freehold)

Term of years absolute (leasehold)

S1 (1) Law of property act 1925

Question 2

Define Fee Simple Absolute in Possession.

Answer 2

Inheritable Interest’ ‘By General Heirs’ ‘Interest not subject to anything else’ ‘Interest is current and person is living there or in receipts of profits’

Question 3

Define Term of Years Absolute.

Answer 3

Law of Property Act 1925 s205(27)

Lease for a limited duration, must have exclusive possession and certainty of duration. Can be fixed term or periodic. s205(1) LPA 1925

Question 4

5 Types of legal interests in land

Answer 4

Easement
Rent charge
Legal Mortgage
Other similar charges
Rights of Entry

Question 5

Equitable interests & types

Answer 5

All other interests in land are equitable

1) Easement which aren’t created correctly - Not created in accordance with s52 LPA 1925 or lasts for a period other than a fee simple absolute in possession or term of years absolute.

2) An estate contract
3) A restrictive covenant
4) Home rights under s30, family law act 1996 - e.g. wife can have an equitable interest in the dwelling house of a couple.
5) An equitable morgage

Question 6

What are the 2 types of obsolete (out of date, no longer used) legal estates?

Answer 6

Life estates

Entailed estates

Question 7

What are life estates?

Answer 7

On death of the tenant, the estate will revert back to the grantor or his heirs.

Question 8

Why is a life estate not a legal estate?

Answer 8

They are not absolute, they are certain to end on the death of the tenant for life

Question 9

What is an entailed estate?

Answer 9

Left to certain heirs (e.g. only male relatives)

Question 10

Why are entailed estates not classed as a legal estate?

Answer 10

No new entailed estates can be created since the Trusts of Land and Appointment of Trustees Act 1996 Sch1 (5)

Question 11

Why can’t future interests be legal estates?

Answer 11

They are due to take place in the future so are not in possession

Question 12

What are the two types of future interests?

Answer 12

Reversion

Remainder

Question 13

What is reversion?

Answer 13

Granting a life interest to someone and when it ends the enjoyment returns back to you.

Question 14

What is remainder?

Answer 14

Granting a life interest to someone and remainder to someone else. When the first person dies the second receives the interest.