A. Since the Law of property act 1925 there have been two legal estates which may be held in land. Freehold (also known as simple absolute in possession) and Leasehold (also known as term of years absolute). Freeholders in theory can do anything they like with their land. In practice this right is limited; as planning restrictions and permissions can be imposed also conservation areas etc impose restrictions. A leasehold is derived from a freehold interest and has 2 key elements being, a fixed duration and exclusive possession. The term or length of the lease is infinitely flexible and can be for any period agreed between the freeholder and the leaseholder. The exclusive possession given under the lease allows the leaseholder to exclude all others from the premises, including the freeholder for the duration of the lease (as long as they comply with the terms of the lease). The lease is a contract between the freeholder and the leaseholder.