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Московский государственный юридический университет им. О.Е. Кутафина

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Земельное право

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Экзамен зачет учебный год 2023 / Dixon, Modern Land Law

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Contents

	4.2.1	The right of survivorship (the ius accrescendi)	149
	4.2.2	The four unities	150
4.3	Tenancy in common		151

4.4The effect of the Law of Property Act 1925 and the Trusts of

Land and Appointment of Trustees Act 1996		153
4.4.1	Before 1 January 1926	153
4.4.2	From 1 January 1926	154

4.5The distinction between joint tenancy and tenancy in

	common in practice: the equitable interest	155
4.6	The statutory machinery governing co-ownership	158
4.7	The nature of the unseverable legal joint tenancy: the trust of land	159
4.8	The advantages of the 1925 and 1996 legislative reforms	163

4.9The disadvantages of the trust of land as a device for

regulating co-ownership		165
4.9.1 Disputes as to sale		166
4.9.2 When is it likely that a court will order sale?		168
4.9.3	The special case of bankruptcy	170
4.9.4	Summary thus far	173

4.9.5The position of a purchaser who buys co-owned land:

	when overreaching occurs	175
4.9.6 If consents are required		177
4.9.7	If consents are not initially required	178
4.9.8	When overreaching does not occur	179

4.9.9The position of the equitable owners:

	problems and proposals	181
4.9.10 The position of the equitable owners faced with
	overreaching: the problem in perspective	184
4.9.11	The question of possession	185
4.9.12 The payment of rent		186
4.9.13 A summary of the Trusts of Land and Appointment
	of Trustees Act 1996	187
4.10 The express and implied creation of co-ownership in
practice: express, resulting and constructive trusts		188
4.10.1	Express creation	188
4.10.2	Creation of co-ownership even though the legal
	title is in one name only	190
4.10.3	Establishing the equitable interest	191
4.10.4	The express trust	192
4.10.5	The ‘purchase money’ resulting trust	192
4.10.6	The constructive trust	195
4.10.7	The nature of the interest generated and
	quantification of share	201
4.10.8	Quantification when there are two legal owners	203
4.10.9	Resulting trusts, constructive trusts and proprietary estoppel	204
4.10.10 Statutory powers		205

Contents

4.11	Severance		207
	4.11.1	Statutory notice: section 36(2) of the Law of
		Property Act 1925	208
	4.11.2	An act operating on his own share	209
	4.11.3	Where joint tenants agree to sever by ‘mutual agreement’	211
	4.11.4	By mutual conduct	211
Summary			213
CHAPTER 5: SUCCESSIVE INTERESTS IN LAND			219
5.1	What is successive ownership of land?		219
5.2	Successive interests: in general		220
	5.2.1	Successive interests under the Trusts of Land and
		Appointment of Trustees Act 1996	221

5.3Successive interests under the old regime: the strict

settlement and the Settled Land Act 1925		226
5.3.1	The essential characteristics of settled land	227
5.3.2	The specific attributes of settled land	227

5.3.3The creation of strict settlements under the

		Settled Land Act 1925	228
	5.3.4	The position of the tenant for life and the statutory powers	229
	5.3.5	The role of the trustees of the settlement in
		regulating the powers of the tenant for life	230
	5.3.6	The fiduciary position of the tenant for life	231
	5.3.7	Attempts to restrict the powers of the tenant for life	231
	5.3.8	Protection for the beneficiaries	232
	5.3.9	Protection for the purchaser of settled land	233
	5.3.10	The overreaching machinery	233
	5.3.11	The duties of the trustees of the settlement	234
5.4	The trust for sale of land: pre-TOLATA 1996		234

5.5A comparison between the strict settlement under the Settled Land Act 1925 and the regime of the Trusts of Land and

	Appointment of Trustees Act 1996		235
Summary			237
CHAPTER 6: LEASES			241
6.1	The nature of a lease		241
6.2	The essential characteristics of a lease		243
	6.2.1	Exclusive possession	243
	6.2.2 For a term certain		251
	6.2.3	Periodic tenancies	251
	6.2.4 Statutory provisions concerning certain terms		252
	6.2.5	Rent	253
6.3	The creation of legal and equitable leases		254
	6.3.1	Introductory points	254
	6.3.2	Legal leases: creation	255

Contents

	6.3.3	Legal leases and third parties	257
	6.3.4	Equitable leases – creation	258
	6.3.5	Equitable leases and third parties	260
	6.3.6	The differences between legal and equitable leases	262
6.4	Leasehold covenants		263
	6.4.1	The separate nature of the ‘benefit’ of a covenant
		and the ‘burden’ of a covenant	263
	6.4.2	Two sets of rules concerning the enforceability of
		leasehold covenants	264
6.5	Rules for leases granted before 1 January 1996		265
	6.5.1	Liability between the original landlord and
		original tenant: the general rule	265
	6.5.2	The continuing liability of the original tenant
		throughout the entire term of the lease	265
	6.5.3	The continuing rights and obligations of the original
		landlord throughout the term of the lease	270
	6.5.4	The assignment of the lease to a new tenant for
		pre-1996 leases	270
	6.5.5	The claimant and defendant must be in ‘privity of estate’	271
	6.5.6	The covenant must ‘touch and concern’ the land	272
	6.5.7	Special rules	273
	6.5.8	The assignment of the reversion to a new landlord
		under pre-1996 tenancies	274
	6.5.9	Section 141 of the Law of Property Act 1925:
		the benefit of the original landlord’s covenants	274
	6.5.10	Section 142 of the Law of Property Act 1925:
		the burden of the original landlord’s covenants	274
	6.5.11	Special rules	276
	6.5.12	Equitable leases and equitable assignments of legal leases	277
	6.5.13	The original landlord and tenant	277
	6.5.14	The assignment of the reversion of an equitable
		lease to a new landlord	277
	6.5.15	The assignment of the equitable lease to a new tenant	278
	6.5.16	The position of subtenants	282
	6.5.17	The Law Commission and proposals for reform	283

6.6The new scheme. The law applicable to tenancies granted on or

	after 1 January 1996: the Landlord and Tenant (Covenants) Act 1995	284
	6.6.1 General principles of the 1995 Act	285
	6.6.2 The tenant’s position in more detail	286
	6.6.3 An assessment of the landlord’s position	292
	6.6.4 To sum up	293
6.7	The landlord’s remedies for breach of covenant	294
	6.7.1 Commercial rent arrears recovery	294
	6.7.2 Action for arrears of rent	295

xii

Contents

	6.7.3	Action for damages	296
	6.7.4 Injunction and specific performance		296
	6.7.5	Forfeiture	297
6.8	The tenant’s remedies for breach of covenant		307
	6.8.1 Damages for breach of covenant		307
	6.8.2 Action for an injunction		307
	6.8.3 Action for specific performance		307
	6.8.4 Retention of future rent		308
6.9	Termination of leases		308
	6.9.1 By effluxion of time		308
	6.9.2	By forfeiture	308
	6.9.3	By notice	308
	6.9.4	By merger	309
	6.9.5	By surrender	309
	6.9.6	By enlargement	310
	6.9.7	By disclaimer	310
	6.9.8	By frustration	310
	6.9.9 By repudiatory breach of contract		310
Summary			311
CHAPTER 7: THE LAW OF EASEMENTS AND PROFITS			317
7.1	The nature of easements as interests in land		317
7.2	The essential characteristics of an easement		318
	7.2.1 There must be a dominant and a servient tenement		318
	7.2.2 The separation of the dominant and servient tenement		319
	7.2.3 The alleged easement must accommodate (benefit)
		the dominant tenement	320
	7.2.4 The alleged easement must ‘be capable of forming
		the subject matter of a grant’	322
	7.2.5	Public policy	325
7.3	Legal and equitable easements: formalities		326
7.4	Legal easements		326
	7.4.1 Easements created by statute		327
	7.4.2 Easements created by prescription		327
	7.4.3 Easements created by deed (unregistered land) or registered
		disposition (registered land)	327
7.5	Equitable easements		329

7.6The significance of the distinction between legal and equitable easements in practice: easements and purchasers

	of the dominant or servient tenement		330
	7.6.1	Registered land	331
	7.6.2	Unregistered land	335
7.7	The creation of easements		337
7.8	Express creation		337

xiii

Contents

	7.8.1	Express grant	337
	7.8.2	Express reservation	338
7.9	Implied creation		339
	7.9.1 Implied by necessity: grant and reservation		339
	7.9.2 Implied by common intention: grant and reservation		341

7.9.3Easements implied under the rule in

Wheeldon v. Burrows: grant only

342

7.9.4Easements implied by reason of section 62 of the Law

of Property Act 1925: grant only

346

7.9.5An example of the creation of easements by section 62

of the Law of Property Act 1925

350

7.9.6A comparison between the rule in Wheeldon v. Burrows

		and section 62 of the Law of Property Act 1925	351
7.10	Easements resulting from prescription		351
	7.10.1	General conditions for obtaining an easement
		by prescription	352
	7.10.2	Easements of prescription lie in fee simple only	353
	7.10.3	Use must be ‘of right’, so as to presume the grant	355
	7.10.4	Use must be in the character of an easement	357
	7.10.5	Use must be lawful	358
7.11	Methods of establishing an easement by prescription		359
	7.11.1	Prescription at common law	360
	7.11.2	Prescription at common law: lost modern grant	360
	7.11.3	The Prescription Act 1832	361
7.12	The extinguishment of easements		362
7.13	A note on profits à prendre		363
7.14	Reform		363
Summary			365
CHAPTER 8: FREEHOLD CONVENANTS			371
8.1	The nature of freehold covenants		372
	8.1.1	Positive and negative covenants	372
	8.1.2	Covenants as contracts	373
	8.1.3	Covenants as interests in land	373
8.2	The relevance of law and equity and the enforcement of covenants		375
	8.2.1	Suing at law	375
	8.2.2	Suing in equity	375
8.3	The factual context for the enforcement of freehold covenants		376

8.4Principle 1: enforcing the covenant in an action between

the original covenantor and the original covenantee	377
8.4.1 Both original parties to the covenant in possession	377
8.4.2 After the original covenantor has parted with the land	377
8.4.3 After the original covenantee has parted with the land	378
8.4.4 Original covenantor having no land at all	378
8.4.5 Defining the original covenantee and covenantor	378

xiv

Contents

8.5Principle 2: enforcing the covenant against successors

in title to the original covenantor – passing the burden		379
8.5.1	The covenant must be restrictive or negative in nature	381
8.5.2	The covenant must touch and concern the land	381

8.5.3The covenant must have been imposed to benefit

land of the original covenantee

383

8.5.4The burden of the restrictive covenant must be

	intended to run with the land	384
8.5.5	Registration	385
8.5.6	The equitable nature of the remedy	387

8.6Principle 3: passing the benefit of a covenant to

successors in title to the original covenantee

388

8.6.1Passing the benefit of positive and negative

covenants at law	388
8.6.2 Passing the benefit of covenants in equity	391

8.7Escaping the confines of the law: can the burden of

	positive covenants be enforced by other means?		397
	8.7.1	A chain of covenants	398
	8.7.2 The artificial long lease		399
	8.7.3 Mutual benefit and burden		399
	8.7.4 Construing section 79 of the Law of Property Act 1925		400
	8.7.5 Rentcharges and rights of re-entry		401
	8.7.6 Discharge and modification of restrictive covenants		401
Summary			403
CHAPTER 9: LICENSES AND PROPRIETARY ESTOPPEL			407
9.1	Licences		407
9.2	The essential nature of a licence		407
9.3	Types of licence		411
	9.3.1	The bare licence	411
	9.3.2 Licences coupled with an interest (or ‘grant’)		412
	9.3.3	Contractual licences	412
	9.3.4 Remedies and contractual licences		413

9.3.5Are contractual licences interests in land? Can they

affect purchasers of the licensor’s land?	413
9.3.6 Are contractual licences interests in
land – are they proprietary?	414

9.3.7Can the personal contractual licence take effect against

		a purchaser despite not being an interest in land?	417
	9.3.8	A summary	419
	9.3.9 The operation of proprietary estoppel: so-called
		estoppel licences	420
9.4	Proprietary estoppel		422
9.5	Conditions for the operation of proprietary estoppel		424
	9.5.1	The assurance	427

Contents

	9.5.2	The reliance	430
	9.5.3	The detriment	431
	9.5.4	Unconscionability	432
9.6	What is the result of a successful plea of proprietary estoppel?		433

9.7The nature of proprietary estoppel and its effect on

	third parties – issues of doubt		435
	9.7.1	Estoppels after the Land Registration Act 2002	437
	9.7.2	Estoppel and e-conveyancing	439
	9.7.3	Estoppel in unregistered land	440
	9.7.4	An apparently similar, but very different, situation	440
9.8	Proprietary estoppel and constructive trusts		440
Summary			445
CHAPTER 10: THE LAW OF MORTGAGES			447
10.1	The essential nature of a mortgage		447
	10.1.1	A contract between borrower and lender	447
	10.1.2	An interest in land in its own right	448
	10.1.3	The classic definition of a mortgage	448
	10.1.4	The mortgage as a device for the purchase of property	449
	10.1.5	Types of mortgage	450
10.2	The creation of mortgages before 1925		452
10.3	The creation of legal mortgages on or after 1 January 1926		453

10.4legal mortgages of freehold property: unregistered land

and registered freehold titles mortgaged before 13 October 2003		453
10.4.1	The long lease method	453
10.4.2	The charge	454

10.5Legal mortgages of leasehold property: unregistered leases and

registered leasehold titles mortgaged before 13 October 2003		455
10.5.1	Long subleases	455
10.5.2	The charge	456

10.6Legal mortgages of registered titles under the Land

Registration Act 2002

456

10.7Registration of legal mortgages under the Land

Registration Act 2002		457
10.8 Equitable mortgages		457
10.8.1 Mortgages of equitable interests		458
10.8.2 ‘Informal’ mortgages of legal interests		458
10.8.3 Mortgages by deposit of title deeds		459
10.8.4	Mortgages by estoppel	460
10.8.5	Equitable charges	461
10.8.6 A problem with equitable mortgages and
	equitable charges over land	461
10.9 The rights of the mortgagor: the equity of redemption		462
10.9.1 The contractual right to redeem		463

xvi

Contents

10.9.2	The equitable right to redeem	463
10.9.3	The equity of redemption	464
10.9.4	Undue influence	468
10.9.5	Unlawful credit bargains	478
10.9.6	Restraint of trade	479
10.9.7	Financial Services and Markets Act 2000	480
10.9.8	Powers of the mortgagor	480
10.10 The rights of the mortgagee under a legal mortgage:
remedies for default		481
10.10.1	An action on the contract for recovery of the debt	482
10.10.2	The power of sale	483
10.10.3	The right to possession	487
10.10.4	Appointment of a receiver	494
10.10.5	Foreclosure	494
10.11 The rights of a mortgagee under an equitable mortgage		496
Summary		497
CHAPTER 11: ADVERSE POSSESSION		501

11.1How is adverse possession established? The rules common to

unregistered and registered land	503
11.1.1 An intention to possess	504
11.1.2 Physical possession of the land	506
11.2 The basic principle of adverse possession in unregistered land	510
11.2.1 The limitation period for unregistered land	510
11.2.2 Stopping the clock of limitation for unregistered land	513

11.2.3The effect of a successful claim of adverse possession in

unregistered land

514

11.2.4The substantive nature of the adverse possessor’s rights prior to completing the period of

		limitation in unregistered land	517
11.3	Adverse possession under the Land Registration Act 1925		518
11.4	Adverse possession under the Land Registration Act 2002		519
	11.4.1	The basic principle	519
	11.4.2	The statutory scheme	520
	11.4.3	The exceptions	521
	11.4.4 Effect of registration of the adverse possessor		524
11.5	Adverse possession and human rights		524
Summary			527
Further reading			531
Index			535

xvii

TABLE OF CASES

88 Berkeley Road, Re [1971] Ch 648 . . . . . . . . . . . . . . . . . . . . . . . . 8.5.2, 8.6.2, 4.11.1 90 Thornhill Road, Re [1970] Ch 261 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.3.11 AG Securities v Vaughan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2.2, 6.2, 6.2.1 Abbey National Building Society v Cann

[1991] 1 All ER 1985 . . . . . . . . . . . . 10.1.4, 4.9.8, 4.10.1, 2.7.3.2.1, 2.7.5, 4.10: Abbey National Building Society v Maybeech Ltd [1985] 3 All ER 262 . . . 6.7.5.5 Abbey National plc v Stringer (2006) . . . . . . . . . . . . . . . . . . . . . 10.9.4, 4.10.1, 4.10.8 Aberconway, Re [1953] Ch 647 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.3.7 Actionstrength Ltd (t/a Vital Resources) v International Glass Engineering

IN GL EN SpA [2003] 2 AC 541; [2003] 2 All ER (Comm) 331;

[2005] 1 BCLC 606 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.8.4 Albany Homes Loans v Massey [1997] 2 All ER 609;

[1997] SLRYB 159 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.10.3.3 Aldred, Re (1610) 9 Co Rep 57b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.2.4 Alliance & Leicester plc v Slayford [2001]

1 All ER (Comm) 1 . . . . . . . . . . . . . . . . . . . . . . . . . 10.1.1, 10.10, 10.10.1, 4.9.4 Allied Irish Bank v Byrne [1995] 2 FLR 325 . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.9.4 Allied London Investments Ltd v Hambro Life Assurance Ltd

(1984) 269 EG41; 270 EG 948 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.5.2 Amana Holdings Ltd v Fakhir Shatub al-Darraji (2003) (unreported) . . . . 6.7.5.4 Amsprop Trading Ltd v Harris Distribution [1996] NPC 154 . . . . . . . . . . . . . 8.4.5 Antoniades v Villiers [1990] 1 AC 417;

[1988] 3 All ER 1058 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2.2, 6.2, 6.2.1 Archangel v Lambeth LBC (2000) (unreported) . . . . . . . . . . . . . . . . . . . . . . . . 11.1.1 Argyle Building Society v Hammond (1984) 49 P & CR 148 . . . . . . . . . . . . . . . . 2.6 Arlesford Trading v Servansingh [1971] 1 WLR 1080 . . . . . . . . . . . . . . . . . . . 6.5.11 Armstrong and Holmes v Holmes (1993) The Times, 23 June . . . . . . . 3.6.1, 6.5.10 Ashburn Anstalt v Arnold [1989] Ch 1 . . . . . . . . . . . . . . . . . 6.2.2, 6.2.5, 9.3.6, 9.3.7 Asher v Whitlock [1865] LR 1 QB 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.2.4 Aslan v Murphy [1989] 3 All ER 130 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.2.1 Aston Cantlow v Wallbank see Parochial Church Council of

Aston Cantlow & Wilmcote v Wallbank (2001)—Attorney

General for Hong Kong v Humphreys [1987] AC 114 . . . . . . . . . . 9.5, 9.5.4 Austen, Re [1929] 2 Ch 155 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.3 Austerberry v Oldham Corporation (1885) 29 Ch D 750 . . . . . . . . . . . . . . . . . . . 8.7

BHP Petroleum v Chesterfield Properties [2001] EWCA Civ 1797;

[2001] All ER (D) 451 (Nov) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.6.1, 6.6.2.2 BRB (Residuary) v Cully [2001] All ER (D) 02 (Aug) . . . . . . . . . . . . . . . . . . . . 11.1.1 Babic v Thompson [1999] O2 LS Gaz R 30; [1999] O3 LS Gaz R33 . . . . . . . . 4.10.3 Bailey v Stevens (1862) 12 CB (NS) 99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.2.3 Bakewell Management Ltd v Brandwood [2004] 2 AC 519;

[2004] 2 All ER 305 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.10.5 Banco Exterior Internacional v Mann [1995] 1 All ER 936 . . . . . . . . . . . . . . . 10.9.4

xix

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