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Explainer - Lease Registration

on Tuesday, 24 May 2016.

This article briefly explains the regime for lease registration, focusing particularly on aspects that are relevant to tenants of commercial premises. It explains which leases can and must be registered...

This article briefly explains the regime for lease registration, focusing particularly on aspects that are relevant to tenants of commercial premises. It explains which leases can and must be registered, other ways of recording the existence of a lease, and summarises the process for registration.

Which leases can be registered?

1. The following must be registered:

  • new leases with a term of more than seven years, whether the landlord's title is registered or not
  • transfers of unregistered leases if there are more than seven years of the term remaining.
  • transfers of any registered lease
  • the grant of any lease that takes effect more than three months after the date it is granted, regardless of the length of the term
  • discontinuous leases of any length, if the landlord's title is registered. A discontinuous lease is one where the tenant only has a right to possession on certain days or weeks of the year
  • discontinuous leases of more than seven years, if the landlord's title is unregistered

2. The following cannot be registered:

  • leases granted with a term of seven years or less

3. The following can be registered but registration is not compulsory:

  • any existing unregistered lease which has more than seven years of its term remaining

If a lease is subject to compulsory registration it must be registered within two months of the date of the lease and it is the tenant's responsibility to deal with registration.

Noting a lease on the landlord's title

When a lease is registered it will be allocated its own title number at the Land Registry. In addition, the lease will automatically be noted on the landlord's title. However, in certain circumstances it is also possible to note a lease which is not registrable. This will ensure that it is recorded on the landlord's title, so any prospective buyers will be aware of it. Only leases with a term of more than three years can be noted.

Registration procedure

Once a lease has been completed, if registration is possible or compulsory, the tenant's solicitor will make the application to the Land Registry. The following are the requirements to enable registration:

  1. certified copy of the lease
  2. Land Registry fee (£40-£910 depending on the value of the lease)
  3. Stamp Duty Land Tax certificate as evidence that the relevant duty has been paid

Registration of easements

If an unregistrable lease contains easements granted to the tenant, it is possible and advisable to register the easements on the landlord's title to ensure that these are protected.

If you require advice in relation to a lease please contact Edward Connolly  in our Commercial Property Law Team on 0117 314 5343.