However, other interests which are not capable of being registered at the Land Registry exist and can override disposals of registered land. These are known as 'overriding interests'.
The recent case of Trevallion (T) v Watmore and another (W) highlights the importance of thoroughly inspecting a property before committing to buy it.
The case concerned adjoining properties, 46 and 52 Melville Street. The garden to no. 46 included a triangle of land to the rear of no. 52 which was fenced off from no. 52.
T owned the a 1,000 year lease (granted in 1954) of the triangle of land. The lease was not registered at the Land Registry.
W bought the freehold of no. 52 including the triangle of land in 2013 and a dispute subsequently arose as to the ownership of the triangle of land.
The Tribunal held that T's lease was an overriding interest as it was an interest belonging to a person in actual occupation. The Tribunal found that W did not have actual knowledge of the occupation at the time of purchase. Therefore, provided the occupation was obvious on a reasonably careful inspection at the time of purchase then W would own no. 52 subject to the lease.
W visited no. 52 on three occasions prior to purchasing it, but the Tribunal held that her cursory inspections were insufficient. The fencing surrounding the triangle of land was concealed behind a large fuchsia bush. W had not checked behind the fuchsia's branches which was not sufficient to constitute a reasonably careful inspection. As a result T's application to register the lease was successful and W's freehold title was subject to T's interest.
The decision in this case highlights the importance of carrying out a thorough visual inspection of a property before committing to buy it. This would include inspections before exchange of contracts and again before completion to ensure that no new interests had become apparent.
A thorough inspection could also highlight other potential issues with a property such as any occupiers or trespassers, potential rights having been acquired or maintenance/repair issues and give you time to resolve those issues before proceeding with the purchase.