‘Please mind the gap’

The registration gap :

You must register all land or property with HM Land Registry if you have bought it, been given it or inherited it.

When the completion of a property transaction takes place it is a requirement pursuant to the most recent Act being the Land Registration Act 2002 to submit the transaction documents to register it at the Land Registry. Since 1 December 1990, the whole of England and Wales has been subject to compulsory registration. This requires registration of a conveyance of a freehold estate, a grant of a lease of more than 21 years, and an assignment of leasehold land with more than 21 years to run. Subject to specific transaction description.

The time between completion of the transaction and the date when the Land Registry register the transaction is called ‘The Registration Gap’. A transaction to be registered is called a “registerable disposition”. If the transaction is linked to a Charge where a monies loan was obtained and the land/property was used as security then this should be registered a soon as possible after completion of the transaction and an Official Search is obtained to protect the Title Register (often referred to as deeds) until the Register has been updated with a completed registration.

If a registration is taking some time then clients should and lenders will be aware that the Land Registry do offer the protected Register when the application is accepted until the registration has completed.  In more complex matters ie a First Registration or a Transfer of Part of the land/property then this can cause issues where the Land Registry advise that the registration may take c.13 – 17 months.  For example, for the new owner/lender where for example the Charge to be registered may be a short term bridging loan facility and a new mortgage product is required to be registered on a redemption (payment off of the bridging loan). The relevant steps should be taken by the instructed lawyer to ensure the lenders are aware of the delays with an application for a first registration unless this is an expedited (application to the Land Registry to mark as urgent and complete as soon as possible if evidence of the reason for the request is provided and accepted).  A buyer may wish to build a new property on a part of land which awaits a completed transfer of part application. Lending facilities may be restricted where the land is not registered.

Where there are issues with any documents submitted for the application and the applicant does not satisfy the request for action or more information requested by the Land Registry then the application may be cancelled and unless an Official Search has been submitted again to protect the Register the Register is open to applications being submitted by another /independent / linked transaction.

The person being the applicant, until the land/property has been registered will, during the registration gap, be an equitable owner; the legal estates remains vested in the seller, who holds the property on trust for the buyer as an equitable owner.

There are powers to “deal” with land/property during the registration gap pursuant to the Land Registration Act 2002 these are limited and some rights can only be exercised by the legal owner of the estate not the equitable owner, as above.

Leasehold Property – a Notice to a Tenant for example may be invalid as the person serving the Notice to the Tenant is not the “legal owner” at the time of the Notice or a Counter – Notice from a Tenant to  a Landlord may be deemed invalid.

You are advised not to just update your DVLA (log book) Bank account and Driving Licence but also the registration address of your land/ property.

You can also complete an online enquiry form. One of the Wollens team will contact you as soon as they are available.