Introduction
Land law in the UK comprises the legal rules and principles that govern the rights and obligations associated with land ownership, use, and transfer. It is a complex area, underpinned by historical common law concepts and modern statutory interventions. At its core, land law establishes how individuals and entities can acquire, possess, and dispose of interests in land, as well as the legal relationship between landowners and other parties. Key requirements within this area of law include understanding property rights, easements, covenants, and mortgages. This article will provide a broad overview of the technical aspects of land law in the UK, citing relevant cases and legislation where appropriate.
The Nature of Land and Estates
The legal definition of land is extensive, encompassing not only the physical ground but also anything permanently attached to it, such as buildings and fixtures. The Law of Property Act 1925 (LPA 1925) significantly streamlined the types of legal estates that can exist in land to two main categories: the fee simple absolute in possession, representing the closest to full ownership, and the term of years absolute, which is a leasehold interest. All other forms of ownership or interest now take effect as equitable interests. The concepts of freehold and leasehold remain critical for understanding the basis of property ownership.
A freehold estate represents ownership of the land for an indefinite duration, while a leasehold estate grants the right to possess land for a specific period, as confirmed in Street v Mountford [1985] AC 809 . In Street v Mountford , Lord Templeman clarified that a lease must confer exclusive possession for a term at a rent. This case remains pivotal for defining the characteristics that distinguish a lease from a licence, which only confers a personal right to occupy land, lacking the proprietary dimension of a lease.
Legal and Equitable Interests in Land
The LPA 1925 made a fundamental distinction between legal and equitable interests in land, partly to simplify the conveyancing process and protect buyers of land. Legal interests are those that are created or transferred by deed, a formal legal document which must comply with certain requirements such as being signed, witnessed and delivered. Key legal interests include easements (rights of way) and mortgages.
Equitable interests, on the other hand, are those interests that were historically recognised by the Court of Chancery which existed before the current unified court system was created by the Supreme Court Act 1981. They are usually created informally in writing but not by deed, or where a person has contributed directly to the purchase price of a property without being recognised as a legal owner. It is essential to note that if an interest has not been created by a legal deed then it has to take effect as an equitable right. The law in relation to land, through operation of the Land Registration Act 2002, has tried to shift away from such a system of dual recognition by attempting to make all title to land a fully registered title, which is governed solely by the register, but it has not eliminated all equitable interests. They may arise as a result of a trust of land where the legal ownership is divided from the beneficial interest, whereby the legal owners are the trustees of the land, and the beneficiaries have rights against them to have the terms of the trust upheld.
Registered and Unregistered Land
Land ownership in England and Wales is governed by two parallel systems, relating to whether the title to the land is registered.
Registered land involves land where the title to the property has been registered in a register maintained by HM Land Registry. It is intended to provide purchasers with an easy means of ascertaining all legal and equitable interest in land, and the identity of the legal owners. In order to be protected against any subsequent purchaser, the land must be entered onto the register in accordance with the Land Registration Act 2002 (LRA 2002), which now makes registration compulsory in all parts of England and Wales. However, there are certain overriding interests listed in the LRA 2002 Schedule 3 that will bind a subsequent purchaser even if they are not registered. Examples of these overriding interests include leases, interests of those in actual occupation, and legal easements.
Unregistered land is an increasingly small area of land, though some land is still held under an antiquated system of paper-based, title-based registration. This is where one can prove ownership by presenting the title deeds of the land going back at least 15 years. For unregistered land, it is necessary to investigate all title deeds to a property from the previous 15 years and check the Land Charges Registry, maintained by HM Land Registry for any adverse charges. Land Charges Act 1972 lists certain registrable interests. If an equitable interest is in the list and not registered, then a subsequent purchaser in good faith of a legal estate for value will not be bound by the right. This protection against equitable interests does not extend to overriding interests or legal estates, which would bind all prospective purchasers.
Easements, Covenants, and Mortgages
Easements are rights to use land owned by someone else, for example, rights of way and rights to light. A legal easement requires being granted by deed, whereas a prescriptive right may exist via the doctrine of prescription. For instance, where a right has been used ‘as of right’, for more than 20 years; ‘as of right’ indicates a clear knowledge and use of a certain practice which has been enjoyed peaceably and consistently and has been used without secrecy, force or permission as decided in Dalton v Angus [1881] 6 App Cas 740 .
Covenants are contractual promises made by owners of land in favour of other land owners, which are either positive or restrictive. A positive covenant requires performance of some act (usually financial) whereas restrictive covenants restrict activities on land. Covenants can be “appurtenant” to the land itself and therefore run with the land and bind later buyers. The case of Tulk v Moxhay [1848] 2 Ph 774 , establishes that restrictive covenants can bind subsequent purchasers with the intention to restrain certain land usage.
Mortgages represent the lending of money with security over a property, usually done through the creation of a charge. The mortgagee has the right to take possession of the land in the event of mortgage default, and to then sell the property to recover any outstanding loan amount. The legal mechanisms for these operations are governed by sections 101-103 of the Law of Property Act 1925.
Recent Developments and Reforms
The Land Registration Act 2002 sought to reform aspects of unregistered land by promoting greater transparency and simplicity of the law. Most recent cases have focused upon the interpretation of overriding interests, highlighting the potential weaknesses in the registered land system.
In
Stock v Barrs (2020) [2020] EWCA Civ 1539, the Court of Appeal had to consider whether an individual had an overriding interest over a property which he had been living in as a lodger, and whether that status could amount to a proprietary interest. The court ruled that a lodger does not have sufficient rights, therefore the right was not an overriding interest under Schedule 3 of the LRA 2002. The court’s decision demonstrates the need for actual occupation, as per the statutory definition of overriding interests in schedule 3 paragraph 2 of the LRA 2002, in order to trigger that protection and the inability to rely merely on a proprietary claim to protect occupier rights, which must be linked to the land.
Conclusion
In conclusion, land law is a diverse and complex area which is constantly evolving. Although this article has briefly touched upon many of its core principles, a deeper study in this area would benefit from further knowledge of specific issues such as: trusts of land, conveyancing, mortgages, planning regulations, and proprietary estoppel. It is by this approach that you will develop the knowledge necessary to understand the framework and its real-world application. The recent legislative reforms and judicial decisions indicate a continued effort to modernise and simplify the law, while acknowledging the importance of preserving individual rights and commercial realities.
