Land Law

Question 1

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?

Answer 1

True

Question 2

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?

Answer 2

Person A owns the fee simple absolute in possession and person B owns a term of absolute which is in possession.

Question 3

What is an easement?

Answer 3

An interest in land where a person has the right to use the land of another person in a certain way.

Question 4

In what instance is the sale of a freehold subject to VAT?

Answer 4

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

Question 5

What does a freehold in possession mean?

Answer 5

You have the right to the rents and also the right to reversion on a tenants lease

Question 6

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?

Answer 6

David has an interest in Greenacre in the form of an estate contract having entered into a contract of option with Shenice

Question 7

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?

Answer 7

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

Question 8

What is the surrender of a lease?

Answer 8

A method by which a lease comes to an end when the lessee yields up their lease to the freeholder

Question 9

What is an estate in land?

Answer 9

A period of time that exists in relation to a piece of land

Question 10

What is a freehold?

Answer 10

A fee simple, a period of time without limit

Question 11

What is a leasehold?

Answer 11

A period of defined duration

Question 12

What are the 5 key interests in land?

Answer 12

Easements
Profits a prendre
Covenants
Mortgages
Estate contracts

Question 13

Is a license the same as a lease?

Answer 13

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

Question 14

What are the two stages in the sale of land?

Answer 14

Exchange and completion

Question 15

When is stamp duty land tax due?

Answer 15

14 days after the effective date, i.e. completion

Question 16

What are the implied obligations of a tenant?

Answer 16

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

Question 17

What are the implied obligations of the landlord?

Answer 17

To allow the tenant quiet enjoyment
Repair and fitness for habitation

Question 18

How can a leasehold come to an end?

Answer 18

Expiry
Either party providing notice to quit
By merger
Surrender (giving back the keys)
Forfeiture (breaches of the leasehold covenants)

Question 19

What is required for a lease to be valid?

Answer 19

Right to exclusive possession
Certainty of duration
Premises subject to lease must be accurately defined

Question 20

What is the interest profit a prendre?

Answer 20

The right of one person to enter and take property off another person’s land

Question 21

What is a mortgage?

Answer 21

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

Question 22

What is a lease technically known as?

Answer 22

A term of years absolute

Question 23

What do interests restrict?

Answer 23

The estate owner in their occupation and use of the land in respect of which the estate exists

Question 24

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?

Answer 24

An easement

Question 25

True or false, land includes all airspace above the earth?

Answer 25

True

Question 26

What is the definition of land in the Interpretation Act 1978?

Answer 26

It includes buildings and other structures, land covered by water and any estate, interest or right in or over land

Question 27

What is a dominant tenant in relation to an easement?

Answer 27

The dominant tenant enjoys the benefit of an easement

Question 28

What is the servient tenant in relation to an easement?

Answer 28

The servient tenant carries the burden of an easement