Prior to 1925, a range of legal estates in land existed. The LPA 1925 reduced the number of legal estates to just two – freehold and leasehold – simplifying the conveyancing process and making property transactions universal. The legal estates are technically known as:

(a) an estate in fee simple absolute in possession (freehold); or

(b) a term of years absolute (leasehold).

The LPA 1925 then sets out what legal interests or charges exist, including familiar terms such estate rent charges, a legal mortgage or an easement.

The principle of “overreaching” was created. Overreaching is a legal process that occurs when a property held under a trust of land is sold or transferred. It’s a protective mechanism designed to ensure that the interests of beneficiaries in the proceeds of land are safeguarded.