What are Land Registry first registrations and why do they matter?
If you own or are looking to purchase land which is unregistered with HM Land Registry, it’s important to understand that unregistered land often brings about unforeseen legal issues. Our specialist residential property conveyancing team explain why and what you can do to avoid problems.
Step one
You will need to appoint a solicitor experienced in land and property registration and working with the Land Registry, to ensure the property or land that is unregistered is registered correctly. Equally important is that the solicitor will also carry out the registration process from beginning to end, keep you updated on progress, and the costs incurred along the way.
Step two – understanding the types of registrations
The first registration of an area of land can be due to a number of reasons including a purchase, remortgage, transfer of equity, or inheritance.
The type of registration falls under two broad categories of compulsory, and voluntary:
- Compulsory First Registrations
If a previously unregistered property is transferred, purchased or mortgaged, it will be necessary to register the property at the Land Registry.
- Voluntary Registrations
If you own land which is unregistered then it is possible for you to apply to the Land Registry to register the land. Doing so provides you with a number of important benefits.
What are the benefits of first registration?
- Security – a registered title is guaranteed by the State. It sets out a description of the land, the owner and the rights and obligations that affect the land. It also includes an up-to-date plan of the property based on the latest Ordnance Survey Map.
- Squatters/Adverse Possession – the owner of the registered land is much better protected against squatters or encroaching neighbours claiming ownership, than the owner of unregistered land.
- Difficulty in proving title – evidence of title can no longer be lost. Whilst the Land Registry will accept a statutory declaration evidencing your ownership in the event that the deeds to the land/property are lost, this may not provide for all the rights to which you are entitled. Unless you have been in possession of the land for a significant amount of time, then a statutory declaration may not even be sufficient and so you may not be able to prove ownership to your land. You may also have to pay for an insurance policy as additional security to the statutory declaration.
- Convenience – all records of registered land are kept at the Land Registry, including all copies of documents that affect the land. As such, old deeds are less likely to be needed for future transactions.
- Proof of ownership – registration simplifies the conveyancing process, as a buyer can easily obtain an official copy of the register and title plan as proof of title at any time.
- Future sale – potential purchasers are likely to expect the land to be registered, and sales of registered land are much quicker and more straightforward from a title perspective, as well as being usually cheaper.
How much is the First Registration Fee?
The fee for a registration can vary from case to case depending on the property value. Your solicitor will also charge fees for the work carried out for you to achieve First Registration.
Help and advice
For help, advice and assistance, contact Sydney Mitchell’s specialist Residential Conveyancing team.
