Leases – How To Register A Lease

Leases
How to register a lease
Introduction
The Land Registry records all the rights relating to a property, for example, who the owner
is, if there is a tenant, what the boundaries of the property are and if anyone else can use
the land to access their land.
When you buy or take a long lease of property, it needs to be registered with the Land
Registry. It is extremely important to correctly and accurately complete the registration
form (and send the correct accompanying documents), as it is the entry of a person’s name
on the register that confirms him/her as the owner of that land under the registry system.
Even when a sale or a new lease is completed, the money paid and the site occupied,
ownership does not change until the new name is entered on the register.
This document acts as a guide to the registration process and gives details on why, when
and how to register. There are numerous benefits when you register your lease, such as:
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Informing any purchaser of your land that you have a lease
Greater protection against the possibility of losing the land by adverse possession
(squatters)
Compulsory and Voluntary Registration
There are two options when a Tenant registers a lease - either compulsory registration,
when you must register your lease with the land registry; or voluntary registration, when
you decide to register your lease with the land registry of your own accord.
Compulsory Registration
It is compulsory to register your lease if:
a) The initial period that the lease is granted for is more than seven years. This means
you have come to an agreement with the landowner that you have possession of a
site for more than seven years.
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b) If you are going to take possession in the future after a fixed number of years. Again
you have made an agreement that you will take ownership of the land at a specified
date on the future for a fixed number of years
c) For valuable or other consideration, for example specified rent.
Even if your landlord has not registered the land they are leasing to you, you will still be
compulsorily required to register your lease (if you meet one of criteria above).
Voluntary Registration
Again, this applies even if your landlord has not registered their property that they are
leasing to you. You can only register a lease voluntarily if there are more than seven years
left on the lease (unexpired). However there are two exceptions:
1. A lease which states from the outset that you are there for a number of years. Once
the lease terminates you vacate, then come back to possess the same land
(possession is discontinuous).
2. If your lease is about to expire and you have been granted another lease of the same
land to take effect within one month of the expiry of the original lease.
Application process for registering your lease
Normally a solicitor would be used to register the lease, for a fee of around £300. However,
it is possible to register a lease yourself, if you are happy to take on the complex form. The
Land Registry is supportive and can answer any queries you may have via its helpline.
When registration is compulsory, the application must be made within two months of
entering into the lease. If the application is not submitted within the time period the
transaction can become void.
If the land is previously unregistered, applicants must submit form FR1 (which can be
accessed via the www.landregistry.gov.uk/_media/downloads/forms/FR1.pdf or from law
stationers.
The FR1 Form must be accompanied by:
a) The lease and a certified copy – you can certify a copy of the lease by simply
photocopying the original and writing a statement, such as ‘I declare that this is
true’, with your name printed, your signature and a date
b) Sufficient details so the land can be identified (unless included in the lease) for
example a plan or map
c) Evidence that you have met stamp duty land tax certificate requirements – find out
more via the HMRC websit: www.hmrc.gov.uk or their helpline on 0845 603 0135
d) All deeds and documents relating to the land.
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Filling in the form
See below for advice on filling in each panel/field on the form (listed by number). Similar
advice can also be found on the Land Registry website, under Practice Guide 1:
1. Enter the local authority serving the property and what council tax is paid in respect
of the property. For example, a unitary authority, London Borough or district council.
2. Enter a postal address including postcode, if applicable. If there is no postcode a
general description will suffice.
3. Sufficient details must be supplied in order to identify clearly the extent of the land
to be registered for example a plan at a scale of 1:1250 with a red line drawn within
the external boundary marking the extent of the property.
4. Mark the box which is applicable, in most case absolute leasehold, and the land
registry will assess the title based on the information provided.
5. Include any merges of registered and unregistered leases or any other application
and their priorities. This may include all charges to be registered and any action you
are applying.
6. The name/s of the people/group applying to be registered as proprietors should be
given.
7. Fill in the particulars of the form, including details of correspondence.
8. You may give up to three addresses for service of each proprietor.
9. Mark a box if the applicant is more than one person. If you are neither joint tenants
nor tenants-in-common with equal share, then mark the last box and complete the
statement as necessary.
10. All charges should be listed in 5, however if the charge carries a land registry MD
reference, then list it here.
11. You must disclose overriding interest. For further information see Schedule 1 of the
Land Registration Act 2002 (http://www.legislation.gov.uk/ukpga/2002/9/contents)
which lists the interests that override first registration.
12. Certificate to any other interest which has not be mentioned or documents provided
13. Only mark if the applicant’s title has not been examined in the usual way. This means
that the title deeds are checked by a conveyancer to see if the landlord is entitled to
grant your tenancy as this will show and rights and or restrictions affecting the
property.
14. To complete the form mark the last three sections where appropriate. Sign and date
to confirm the details.
The form should be signed by two of a community group’s directors or a director and the
company secretary.
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Once the form is completed you should send it off, with the necessary documents and fee to
the land registry office serving in the area where your land is situated. It is important that
you send it to the correct office. A list of the administrative areas in England and Wales can
be accessed via: www.landregistry.gov.uk/professional/guides/practice-guide-51
When dealing with previously registered land, a similar process is adopted, though this
should be easier as the land registry will have a number of details from the first registration.
The form for previously registered land is AP1 available to download via:
www.landregistry.gov.uk/_media/downloads/forms/AP1.pdf.
In respect to both AP1 and FR1 forms there are several registration requirements. The land
registry will register the tenant as the “proprietor” of the lease and this will create a new
title.
It will be given a unique title number and a new register is created for the new estate/land.
A notice is added onto the superior title (landlord’s title) under the charges section to show
that that there property is subject to the lease.
Fees to register a lease
The land registry does not receive Government support and so charges fees for registration
to cover its costs. The fee to register a lease may vary - you can access the Land Registry
Fees calculator online (www.landregistry.gov.uk/professional/fees/fees-calculator) which
will calculate a fee tailored to your lease registration.
Simply go to the webpage, choose the appropriate type of application and then type in the
value or rent payable in order to calculate the fee.
You may also have to pay Stamp duty, but this is a separate fee and process. For up to date
information on stamp duty fees go to HM Revenue & Customs website via:
www.hmrc.gov.uk/sdlt/intro/rates-thresholds.htm
Glossary
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Tenant - Occupies land or property with permission from the landowner.
Party - the landlord or the tenant
Lease - A contract in which one party transfers land or property, to another party for
a period of time, in exchange for consideration.
Consideration - usually specified monetary rent but could include other
arrangements as well.
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Registration - In this context, it is a system by which ownership of land or property is
recorded by the government, in order to provide evidence of the title and details of
the land in case of it being sold or if there is a dispute.
Title - It refers to the rights of the land and the legal ownership of those rights.
Proprietor -This refers to the owner of the land
Charge - In this context, it refers to the burdens and obligations of the land owner
shown on his land registration, this may include leases, right of ways, etc.
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