Land Law Flashcards
True or false, the sale of a leasehold estate is exempt from VAT, as the leasehold estate is a different estate from the fee simple?
True
Person A owns the fee simple absolute in possession of a building. They grant a lease to Person B for 25 years at an annual rent of £10,000. What does this mean legally?
Person A owns the fee simple absolute in possession and person B owns a term of absolute which is in possession.
What is an easement?
An interest in land where a person has the right to use the land of another person in a certain way.
In what instance is the sale of a freehold subject to VAT?
Only the sale of a freehold estate (the fee simple) in a commercial building that is less than three years old might be charged with VAT at the standard rate
What does a freehold in possession mean?
You have the right to the rents and also the right to reversion on a tenants lease
Shenice owns the freehold estate of Greenacre and agrees with David that he may, if he chooses, buy Greenacre for £500,000 provided he does so within the next 21 months. How would this situation be described?
David has an interest in Greenacre in the form of an estate contract having entered into a contract of option with Shenice
For the purposes of S24(3) TCGA 1992, is a central heating system an asset that is separate from the land on which it is situated?
Being an integral and substantial part of the building which permanently improves it and makes it more convenient, the central heating system is a fixture, and so becomes part of the building which is regarded as separate from the land on which it is situated
What is the surrender of a lease?
A method by which a lease comes to an end when the lessee yields up their lease to the freeholder
What is an estate in land?
A period of time that exists in relation to a piece of land
What is a freehold?
A fee simple, a period of time without limit
What is a leasehold?
A period of defined duration
What are the 5 key interests in land?
Easements
Profits a prendre
Covenants
Mortgages
Estate contracts
Is a license the same as a lease?
A licence is not a lease, but rather a permission given by the occupier of land to do something which would otherwise be unlawful in relation to the land
What are the two stages in the sale of land?
Exchange and completion
When is stamp duty land tax due?
14 days after the effective date, i.e. completion
What are the implied obligations of a tenant?
To pay rent
To pay rates and taxes
To allow the landlord to visit the premises if they are liable to repair
To return the premises to the landlord at the end of the lease in a state of repair
What are the implied obligations of the landlord?
To allow the tenant quiet enjoyment
Repair and fitness for habitation
How can a leasehold come to an end?
Expiry
Either party providing notice to quit
By merger
Surrender (giving back the keys)
Forfeiture (breaches of the leasehold covenants)
What is required for a lease to be valid?
Right to exclusive possession
Certainty of duration
Premises subject to lease must be accurately defined
What is the interest profit a prendre?
The right of one person to enter and take property off another person’s land
What is a mortgage?
A mortgage of land is the transfer of an interest in land in order to secure the repayment of a loan or the discharge of some other obligation
What is a lease technically known as?
A term of years absolute
What do interests restrict?
The estate owner in their occupation and use of the land in respect of which the estate exists
You are a leaseholder and have access to neighbouring land to get to your flat, what is the right of access over land known as?
An easement
True or false, land includes all airspace above the earth?
True
What is the definition of land in the Interpretation Act 1978?
It includes buildings and other structures, land covered by water and any estate, interest or right in or over land
What is a dominant tenant in relation to an easement?
The dominant tenant enjoys the benefit of an easement
What is the servient tenant in relation to an easement?
The servient tenant carries the burden of an easement
