A Guide to the Property Market of England & Wales
Part I - Property Tenure
Introduction
Historically, all land in the United Kingdom was held by the Crown but over the centuries this has evolved into two principal forms of land ownership - freehold and leasehold. Licensed interest and tenancies at will also form part of property tenure but to a much lesser degree and as such we have only covered these in a very limited form.
Freehold
Ultimately all land in private ownership is held on a freehold basis with the owner holding the property in perpetuity. The owner may be in occupation of the property or he may have forgone the right to occupation by granting a leasehold interest and in such instances he would therefore hold a reversionary freehold interest.
The rights of freehold ownership are limited by various factors, under both Statute and Common Law, including the Law of Property Acts, the Landlord and Tenant Acts and the Town and Country Planning Controls. The freehold title may be restricted by covenants which run with the land and also by easements over the property in favour of other properties.
Leasehold
A leasehold interest is granted from a freehold estate or a superior leasehold interest. A lease is a contract for a term of years certain and is usually subject to both positive and negative covenants.
Licences
A licence is also granted from a freehold or leasehold and is a legal consent for a right to do something that would otherwise be illegal or wrongful. It may be gratuitous, contractual or coupled with an interest in land. A gratuitous ("mere" or "bare") licence can always be revoked (i.e. cancelled), but revocability of a contractual licence depends on the terms of contract. A licence coupled with an interest in land may be irrevocable and, unlike the other two categories, may be binding on successors in title of the licensor. One example of a licence is permission, usually required in writing, given specifically by an owner to a tenant, enabling something to be done that would otherwise be a breach of a term of a lease.
A licence does not transfer any interest in the land but may authorise the licensee to enter the licensor's land for some specific purpose. It differs from a leasehold in that the licensee does not have a paramount control of the land and may only enter thereupon for the purposes of the licence; the licensor may enter the land and use it in any way not inconsistent with the rights of the licensee.
Tenancy at Will
A tenancy at will is derived either from a freehold or leasehold interest and is a tenancy with no fixed term which continues so long as, in general, the tenant is willing that it should do so; it is an equitable interest and is created either by agreement or by implication of law. There may not be a contractual relationship between landlord and tenant by formal document.
Part I - Property Tenure
Part II - Property Leases
Part III - The Legal Principles in the Acquisition of Office Property
Part IV - The Legal Principles in the Disposal of Office Property
Part V - Lease Provisions
Part VI - Property and Associated Costs
Part VII - The Steps to Acquiring Offices
Part VIII - Conclusion
Glossary of Terms