Legal Interests And Estates

Question 1

What are the requirements for something to constitute a freehold legal estate?

Answer 1

Must be…
- a perpetual estate
-must be in immediate possession (cannot be future)
- last as long as it is inherited

Question 2

What are the requirements for something to constitute a leasehold legal estate?

Answer 2

Must be…
- a fixed term
- a perpetual estate

Question 3

What leases are included in a ‘term of years’ to constitute a legal estate?

Answer 3

• lease for a specified number of years
• for less than a year
• periodic tenancies

Question 4

In what statute (and section) can you find legal estates?

Answer 4

Section 1(1) of the Law of Property Act 1925.

Question 5

In what statute (and section) can legal interests be found?

Answer 5

Section 1(2) of the Law of Property Act 1925.

Question 6

What is states in section 1(3) of the Law of Property Act 1925?

Answer 6

All other estates and interests (which aren’t mentioned in section 1(1) or 1(2), can be equitable only.

Question 7

Which interests are always equitable?

Answer 7

Covenants and contracts for the sale of land.

Question 8

Which legal interests are included in section 1(2), and what are the requirements for each?

Answer 8

A) easements and profits - must be either perpetual or fixed.
B) rentcharges - charged on land in possession, can be perpetual or fixed.
C) charge by way of legal mortgage.
E) right of entry- lease or annexed to a rent charge.

Question 9

What is important to remember about rent charges?

Answer 9

The Rentcharges Act 1977 made it so no new rentcharges could be created, all will be gone by 2037.

Question 10

What is a covenant?

Answer 10

It limits how the property is used.

Question 11

What is a mortgage?

Answer 11

Lender loans money to mortgagor, using the property as collateral in the instance where the mortgagor defaults on their payments.

Question 12

What is a rent charge?

Answer 12

Owner makes regular payments to a 3rd party (usually for their services e.g. building company). This is usually an annual payment.

Question 13

What is an easement?

Answer 13

Allows someone to use the property for a specific purpose.

Question 14

What is a profit à prendre?

Answer 14

Allows someone to take natural resources from the property.

Question 15

What are the features of unregistered land?

Answer 15

No central record of titles
Collection of deeds
Some registration for chargers