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Immovable Property

Also known as: Real Property, Real Estate, Land

Definition

Immovable property is land and anything permanently attached to it—such as buildings, structures, or minerals—that cannot be moved without causing damage or altering its nature.

This distinction matters most when dealing with overseas property, because immovable property is always governed by the law of the country where it's physically located, regardless of where you live or where your will was made.

What Does Immovable Property Mean?

Under UK law, immovable property (also called real property or real estate) includes land, buildings, minerals in the soil, and rights over land. According to HMRC guidance, immovable property is always situated where it's physically located—a principle that becomes crucial when planning your estate if you own property abroad.

English law follows the principle of lex situs (the law of the place where property is situated) for immovable property. This means succession to land and buildings is governed by the law of the country where they're located, not your domicile. For example, David's holiday villa in Spain (£280,000) is governed by Spanish succession law when he dies—not UK law—even though he lives in Manchester. Spain's forced heirship rules may require two-thirds of the estate to go to his children, regardless of what his UK will says.

Both freehold and leasehold property count as immovable property. A leasehold flat represents an interest in land, even though it's time-limited. This permanently attached nature distinguishes immovable property from movable property (money, shares, possessions), which is governed by the law of your domicile at death.

For UK residents with overseas property, this often means creating separate wills for different countries. Emma owns properties in London (£850,000), France (€250,000), and Dubai (AED 1.2 million). She typically needs three separate wills to ensure each property is distributed according to local law while avoiding conflicts between jurisdictions.

Common Questions

"Does my UK will cover overseas property?" A UK will covers your movable assets anywhere in the world, but immovable property (land and buildings) overseas is governed by the law of the country where it's located. Your UK will may not be recognised by foreign jurisdictions, so many people create separate wills for property in different countries.

"What's the difference between immovable and movable property in estate planning?" Immovable property (land and buildings) is governed by the law where it's physically located, while movable property (money, shares, possessions) is governed by the law of your domicile at death. This distinction is crucial when you own property abroad or have foreign connections.

"Is a leasehold property considered immovable property?" Yes, leasehold property is classified as immovable property for succession law purposes in England and Wales. Both freehold and leasehold interests in land are treated as immovable property, even though leasehold involves a time-limited right to occupy rather than absolute ownership.

Common Misconceptions

Myth: "My UK will automatically covers all my property worldwide, including my villa in Spain."

Reality: While a UK will can include provisions for overseas immovable property, the foreign country applies its own succession laws. Spain has forced heirship rules that may override your UK will's provisions. You typically need a separate Spanish will for Spanish property to ensure smooth inheritance according to local law.

Myth: "Immovable property just means houses—my flat doesn't count because it's leasehold."

Reality: Both freehold and leasehold property are classified as immovable property in England and Wales. Leasehold interests are still interests in land, even though they're time-limited. The key distinction is whether it's attached to land (immovable) versus portable (movable), not the ownership type.

  • Movable Property: The contrasting category covering money, shares, and possessions, which is governed by domicile law rather than location law.
  • Overseas Property: Where the immovable property distinction matters most in practice, requiring separate wills and probate applications.
  • Foreign Assets: The broader category of non-UK assets, including both immovable property abroad and movable assets held overseas.
  • Freehold: One form of immovable property interest representing absolute ownership of land and buildings.
  • Leasehold: Another form of immovable property interest involving time-limited rights to occupy land.

Need Help with Your Will?

Understanding immovable property is crucial when creating your will, especially if you own land or buildings in the UK. Properly documenting your property ensures your wishes are legally binding and your beneficiaries inherit smoothly.

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Legal Disclaimer:

This article provides general information only and does not constitute legal or financial advice. WUHLD is not a law firm and does not provide legal advice. Laws and guidance change and their application depends on your circumstances. For advice about your situation, consult a qualified solicitor or regulated professional. Unless stated otherwise, information relates to England and Wales.