Fixtures and Fittings Flashcards
What is the two stage test that determine whether an object is a fixture or a chattel?
Berkley v Poulett
(a) the degree of annexation;
(b) the purpose of annexation
The degree of annexation
The object needs to be easily removable (without causing damage to the property)
The purpose of annexation
Why has the object been attached to the land ?
This is the key test and takes priority over the degree of annexation
If the object was attached to the land to enhance the land or to create a permanent improvement, then it is a fixture.
If the object was attached to the land for the better enjoyment of the object, then it retains its characteristics as a chattel.
The question depends on the circumstances of each case with the onus of proof being on the person claiming that the object has seized to be a chattel.
What is an interest in land?
A person who has an interest in land has a right over land owned by another person.
These are set out in s1(2) LPA 1925
They are capable of being legal, provided the relevant formalities have been used.
What are the different types of interest in land?
- Easement and Profits
- Rentcharges
- charge by way of legal mortgage
- interests in land which arise by operation of statute
-rights of entry
Easements and Profits
- An easement is a right of one land owner to make use of another nearby piece of land for the benefit of their own land. For example, a right of way.
- A profit is a right to go on somebody else’s land and take from that land something which exists naturally. For example, a right to fish or a right to graze cattle
When are easements and profits capable of being legal?
Easement and profits are only capable of being legal if they are for a duration equivalent to an estate in fee simple absolute in possession (freehold).
Only easements and profits lasting forever or for a fixed duration are capable of being legal.
This means that an easement or a profit for an uncertain duration is not capable of being legal .
Rent charges
A rentcharge is a right to receive a periodic payment charged on the land. They are uncommon.
rentcharges are only capable of being legal if they are perpetual (I.e. forever) or for a term of years absolute (I.e. forever a fixed duration).
Charges by way of legal mortgage
A mortgage is an interest over property granted by the borrower to the lender as security for a debt or the discharge of some other obligation.
The lender provides a loan and in return the landowner grants the lender security by way of a mortgage over the property.
The borrower is the mortgagor as they create the mortgage
the lender is the mortgagee as they have the benefit of the mortgage.
Interests in land which arise by operation of statute
Some rights arise against a piece of land by operation of an act of Parliament. The owner of the rights will, in practice, be some form of government agency. For example, the charge for inheritance tax or the charge for legal aid.
Rights of entry
A right of entry is either:
a landlords right to forfeit the lease (bring the lease to a premature end) if the tenant breaks the terms of the lease; or]
A rentcharge owners right to reclaim the land if the money owed is not paid.