All land in England and Wales is owned absolutely by the Crown, which holds what is known as "allodial" title. The fee simple, or "freehold" title, is a right granted by the Crown to the freeholder, allowing them to use the land indefinitely. Similarly, a term of years absolute, or "leasehold" estate, is a right granted by the freeholder to the leaseholder, permitting use of the land for a fixed period. Sarah should explain to Edward that although he will hold a freehold title, this is technically a grant from the Crown and is not absolute ownership in the allodial sense. 

Key Point: The principle that all land in England and Wales is ultimately owned by the Crown is a foundational concept in English property law. Freehold and leasehold titles are rights derived from the Crown's absolute ownership, reflecting the hierarchical structure of land tenure in the UK. Understanding this structure is essential for appreciating the nature of property rights and transactions.