Registering leases

The Land Registration Act 2002 came into force on 13 October 2003, making it compulsory to register a range of leases from that date and introducing new procedures.

When to register

The scope of the obligation to register varies depending on whether the lease relates to registered or unregistered land.

Granted on or after 13 October 2003 out of registered land

You are required to register a new lease granted for a term of more than seven years from the date of the grant, even if there are seven years or less of the original term unexpired at the date of registration. You are also required to register:

• reversionary leases taking effect more than three months from the date of the grant;
• discontinuous leases regardless of the length of the term; and
• leases granted under the provisions of the Housing Act 1985.

Applications must be lodged in form AP1.

Granted on or after 13 October 2003 out of unregistered land

You are required to register a lease granted for a term of more than seven years from the date of the grant, even if there are seven years or less of the original term unexpired at the time of registration. You are also required to register:

• discontinuous leases where the total letting period exceeds seven years;
• reversionary leases taking effect more than three months from the date of the grant, granted out of any unregistered freehold estate or out of any unregistered leasehold estate whose term has more than seven years to run at the date of the grant; and
• leases granted under the provisions of the Housing Act 1985.

Applications must be lodged in form FR1.

Transfers, assignments and protected first legal mortgages, dated on or after 13 October 2003, of an unregistered leasehold estate

With certain exceptions, you are required to register assignments, transfers or assents, including vesting assents, on sale, or for any consideration, or by way of gift or by order of the court, of an unregistered leasehold estate where more than seven years of the original term are unexpired at the date of the transfer, assent or assignment inducing registration. The exceptions to this rule are assignments of a mortgage term and surrenders of a lease to the reversionary owner where merger is to be effected. Transfers by operation of law are not required to be registered. These exceptions are explained in detail in Land Registry Practice Guide 25, 'Leases: when to register'.

You are also required to register a protected first legal mortgage of an unregistered leasehold estate where more than seven years of the original term were unexpired at the date of the mortgage inducing registration.

The applications referred to above must be lodged as a compulsory first registration in form FR1.

Leases that cannot be registered

The following leases cannot be registered:

• public private partnership (PPP) leases, whatever the length of their term;
• leases for seven years or less, other than the discontinuous leases, reversionary leases and leases under the provisions of the HA 1985 referred to above; and
• leases where the term commences more than 21 years from the date of the lease and where a rent or premium is payable (void under s 149(3) LPA 1925).

Noting of leases, and options and easements in leases, against the lessor's title

You can make a specific application to note a lease, provided it:

• is granted for a term of more than three years from the date of the grant;
• is not required to be registered;
• does not relate to a trust of land or a settlement under the Settled Land Act
• 1925; and
• is not a PPP lease.

Prescribed clauses leases

The use of prescribed clauses is compulsory for leases of registered land granted on or after 19 June 2006, unless they fall within one of the statutory exceptions. It is important that these clauses are completed correctly, as it is only from the information provided in the clauses that Land Registry will prepare the register entries to complete registration of the lease.

Detailed guidance on the completion of prescribed clauses is contained in Land Registry Practice Guide 64, 'Prescribed clauses leases', but general points to consider are:

• Generally, do not omit or delete any text from the prescribed clauses, other than that shown in italics. Even where there is no information to enter, the clause heading should remain.
• Inapplicable wording where the clause contains options may be omitted or deleted.
• Ensure the prescribed clauses are completed accurately to reflect the contents of the lease, for example, on easements, options or alienation notes.
• Clause LR4 should either set out the property description in full or refer to the clause or schedule in the lease where the full description is set out. You should avoid using a composite approach where the description is partly referred to in LR4 and partly referred to elsewhere in the lease.
• Only a standard restriction can be applied for in clause LR13. Non-standard restrictions (and all restrictions where the lease is not a prescribed clause lease) must be applied for in form RX1. When applying for a non-standard restriction, take care when framing the entry.

Consents

Where appropriate, remember to enclose the following consents with the application:

• the consent of a freeholder (or head lessor) to the registration of a sub-lease;
• the consent of a restrictioner under a restriction on the landlord's title;
• the consent of a cautioner under a registered caution; and
• the consent of a chargee holding a legal charge over the landlord's title.

Easements

Registration of easements in a lease granted on or after 13 October 2003 is required even where the lease itself cannot be registered. Failure to register means that the easements only take effect in equity. Equitable easements must still be protected by a Class D (iii) land charge where the servient land is unregistered, or by an agreed or unilateral notice (applied for in form AN1 or UN1) where it is registered.

Surrender of an existing lease and grant of a new lease

If the application involves the surrender of an existing lease and the grant of a new lease, ensure any evidence of the surrender is lodged, together with discharges of any charges on the surrendering title.

Lease plans

Is a plan required?

Rule 24 of the Land Registration Rules (LRR) 2003 requires that an application for first registration must be accompanied by 'sufficient details, by plan or otherwise'¦ so that the land can be identified clearly on the Ordnance Survey map'.

For a dealing with part of a registered title, r 213 of the LRR 2003 requires that 'a document lodged at Land Registry dealing with part of the land in a registered title must have attached to it a plan identifying clearly the land dealt with'. However, if the precise extent of the land leased can be identified clearly on the landlord's registered title plan, a verbal reference to that plan is acceptable. This exception does not apply to prescribed clauses leases where there is a letting of part, however, and clause LR4 requires a plan to identify the land in the lease.

Land Registry requirements

Detailed requirements are set out in Land Registry Practice Guide 40, 'Land Registry plans'. The main requirements are set out below:

Scale and orientation

The plan must be drawn to an appropriate scale and show its orientation. Preferred scales are 1/1,250 or 1/500 for urban properties and 1/2,500 for rural properties. Do not base a scale on an imperial measurement (for example, 16 feet to 1 inch).

Plans reduced in scale or photocopied plans

Try to avoid the use of reduced or photocopied plans where possible. Where it is clear that the lease plan is a reduced copy of an original plan, it is only acceptable if the original scale has been deleted, it has been endorsed with a statement to the effect that it is a reduced copy or the actual (new) scale is shown.

Although not ideal, a coloured copy or black and white photocopy that has been coloured is acceptable, provided it is to scale and the extent of the land leased is unambiguous.

Any plan attached to a certified copy of an original deed must not be a reduced copy of the original. It must be identical to the original in all respects.

Showing the extent of the property

The Land Registry must be able to identify the property on the Ordnance Survey map and the landlord's title plan, though this does not mean that the deed plan necessarily has to be based on OS mapping. Showing the property's general location in relation to roads or other landmarks will help Land Registry relate the property to the OS map.

The property must be clearly identified on the plan, using suitable colouring, hatching or edging and, to avoid requisitions, it is important that all colour references referred to verbally in the deed are reflected on the plan. Ensure markings do not obscure any other detail on the plan.

Leases often relate to properties that comprise part only of a building and it is important that any floor levels are identifiable from the plan and verbal description. This requirement does not relate solely to property above ground '“ vaults, cellars and strata of land must also be clearly identifiable.

In the interests of accuracy and to avoid requisitions, consider using an inset plan or a larger scale plan to show intricate boundaries.

Statements of disclaimer

Statements of disclaimer, such as those used under the Property Misdescriptions Act 1991, must not be used and will result in the application being rejected.

Further information

You can find further guidance on leases on the Land Registry website at www.landregistry.gov.uk and specific advice can be obtained by calling the Customer Information Centre at any Land Registry office.