Tenure and estates

Question 1

An owner holds land under a grant made by the State many years ago which is freehold in substance but carries certain conditions implied into it by statute. A neighbour holds under a State lease for a term of ninety-nine years. A third plot nearby is occupied under a temporary licence granted to a contractor for under ten years so that he may store materials.

Consider the following statements.

1. (i) The first is an estate in perpetuity.
2. (ii) The second is limited in duration.
3. (iii) The third gives its holder exclusive possession.
4. (iv) The third creates no tenancy.

1. A. (i), (ii) and (iii)
2. B. (i), (ii) and (iv)
3. C. (ii), (iii) and (iv)
4. D. (i), (ii), (iii) and (iv)

Question 2

A client who is about to commit to a leasehold apartment with seventy-two years left to run has been unsettled by a relative who told him at a family gathering that leasehold owners are merely long-term tenants, that they own nothing at all, and that the money would be better spent on a freehold property however small. He has already paid the option money and is now anxious. He asks his agent to explain plainly what it is that he will hold if he proceeds to completion.

Which statement most appropriately describes his position?

1. A. He owns nothing, holding a contractual right of occupation for the balance of the term.
2. B. He owns an estate in the land for the unexpired term, which he may sell or mortgage.
3. C. He owns the apartment outright, the length of the term being immaterial beyond sixty years.
4. D. He owns the apartment jointly with the freeholder for as long as the term has to run.