What are your obligations?

There are certain circumstances where it is necessary to register a lease at the Land Registry; this includes the following situations:-

  1. The lease has a term of more than seven years
  2. The assignment of an existing lease with more than seven years to run
  3. The grant of a lease that takes effect more than three months after the grant

The obligation to register the lease usually falls on the tenant and such an application for registration must be made within two months of the date of the lease.

What are the consequences of non-registration?

There are various consequences for failing to register a lease at HM Land Registry. These consequences include:

  1. The lease will have no effect on law. However, there is an argument that there is an equitable lease. An equitable lease does not have the same security as a registered lease. As a result, any Landlord or Tenant will find it difficult to dispose of their interests in the property, given the insecure position.
  2. There is also a risk that a landlord may be unable to recover any unpaid rent from the guarantor in the event that the tenant fails to pay.
    What should a tenant/landlord do to avoid this?

What should a tenant/landlord do to avoid this?

Following completion of the lease, the tenant should ensure that they promptly submit their application to the Land Registry to register the lease.

Any landlord should ensure that the lease puts the tenant under an obligation to register the lease and forward a copy of the title document following registration. It is important for all landlords to make enquiries with tenants to ensure that the lease has been registered accordingly.

If you would like advice about registering a lease at the Land Registry or about any commercial property matter, call Beswicks Legal on 01782 205000 or email enquiry@beswicks.com.