A leaseholder owns an estate in the land for the unexpired term
A worked RES examination question on tenure and estates, from our Paper 1 bank — with the rule it turns on, and why each of the four options is right or wrong.
The question
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?
The answer, and why
Answer: B
The rule. A leaseholder owns an estate in the land for the unexpired term. He is not a mere contractual occupier.
Why B is correct. An estate for the unexpired term.
The other options.
- A is the relative's view.
- C treats a long term as freehold.
- D makes him a co-owner with the freeholder.
Exam note. Leasehold is ownership of an estate. The estate happens to have an end date.
More on Tenure and estates
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