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Estates & Interests In Land (Legal Interests (Legal easements/profits,…
Estates & Interests In Land
Legal Estates
S.1(1) LPA Act 1925 - two legal estates
Freehold (fee simple absolute in possession)
Fee simple = one which passes to heirs on death
Fee = land is capable of being inherited
Simple = no limitation on who can inherit
Absolute = not subject to limitations
Possession = legal estate must exist in possession, immediate right to go into possession
Term of years absolute (Lease)
S.205(1) LPA 1925 - can be fixed term or periodic
S.149(3) LPA 1925 - a lease must come into effect in possession within 21 years of its creation
Lease must be created by deed
S.54(2) - a lease for 3 years or less may be created in writing or orally
Legal Interests
Rights over a land of someone else
S1(2) LPA 1925 - five legal interests
Legal easements/profits
Profit = a right to take something from another's land (e.g. grazing, fishing, shooting rights
Easement = a right that a owner may have over a neighbouring piece of land (e.g. a right of way, a right to use the drains)
Must be equivalent to one of the two legal estates and be by deed to be legal
Legal rentcharge
A right to periodic payment of money
Must be perpetual or granted for a term of years absolute and if created by deed, will constitute a legal interest
Rentcharges Act 1977
Legal mortgage
Charge must be by deed and expressed to be by way of legal mortgage
Certain charges arising under statute
Rights of entry in legal leases & legal rentcharges
Where a landlord reserves the right to take possession if obligations not complied with
Rentcharge deed
Equitable Interests
Any interest which does not qualify as a legal estate or legal interest
Can be held by someone of any age
Examples
Interests which do not comply with required formalities
Trusts
Estate contract - following exchange of contracts
Restrictive covenant
Must be created in writing, S53(1) LPA 1925
Distinguishing legal estates & interests from equitable interests
Legal estates/interests are developed by common law, they bind the world
Equitable interests are developed by courts of equity and are based on principle of fairness. Not all buyers will be bound
Commonhold
Commonhold and Leasehold Reform Act 2002
In order to meet needs of flat owners/apartments, e.g. retirements homes & business parks
Created out of an absolute freehold registered estate