Autumn 2011

Welcome to the latest legal advice column from Bowcock Cuerden. This time I am talking to solicitor Natasha Parkin about the Land Registry and the registration of title to land. This is one of the subjects that Natasha knows very well as she has been part of our team, working under the instruction of the British Waterways Board, to register their land in the North West….and that is a lot of towpath!!
-----------------------------------------------------------------------------------------

Natasha, to start with, can you explain what the Land Registry is?

Land Registry is a government department tasked with maintaining an accurate record of the ownership of all land in England and Wales. (separate arrangements apply in Scotland and Northern Ireland). It is relevant to all of us who own land, even if it is just the piece of land that our house is built upon.

Is it a new thing?

No, but its importance and relevance have been growing in recent years as technology has allowed the computerisation of land records.

What’s the history?

Throughout the 19th Century various acts were passed to introduce a voluntary national system of land ownership registration but these were ineffective and it was not until 1925 that the Land Registration Act was passed which introduced the compulsory registration of title to land.

This still seems a long time ago.

It has been a very gradual process. Compulsory Registration by order only applied to various areas of the country over time. The last area to be so ordered was only in 1990 and this was only on the sale of the land or property. Compulsory Registration of land that is given as a gift has only been required since 1998.

So I guess that the national picture is a little uneven?

Yes, although the amount of unregistered land is decreasing every year. According to the latest Land Registry figures, 25% of land in England and Wales remains unregistered, in Cheshire East the figure is a little over 20%. The areas with the highest amount of unregistered land are mostly in Wales whereas areas as diverse as Newport, Middlesbrough and the Scilly Isles are fully registered.

What information does the registry hold for each registered property?

Broadly speaking they will have a large scale Ordnance Survey map with the extent of the land outlined in red and any buildings outlined in black. They will also have details of the title holder, any leases that may apply, rights of way and restrictive covenants. In addition any mortgages secured on the property should be recorded as well as dates of transfer.

So all my old Deeds can be thrown away?

The answer is generally no. It is necessary to retain documents to which the register entries refer. Take the advice of a legal professional before disposing of any documents of this nature.

How do I find out if my land or house is registered?

In Crewe and Nantwich anyone who bought their house after 1974 should find they areregistered as this is when the compulsory registration order was applied to this area. In the case of gifted property this date is 1998, as I referred to earlier. However, to be absolutely certain you may request copies of your register entries via your solicitor or direct from the Land Registry.

If my property is not registered is it simply best to leave it?

You are certainly under no legal obligation to register until the property is transferred to a new owner, but there may be some compelling reasons why you may voluntarily register.

Such as?

When a property or land is to be sold, it is most likely that a buyer will expect registration to have been completed by the vendor. In order to increase the coverage of the register, Land Registry are offering a discount of up to 25% on the fees for a first registration when it is done voluntarily and not part of a disposal or transfer - so taking action now can save both time and money. Even if you are not intending to move from your present home, the registration process will subsequently need to be completed by the beneficiaries of a Will, which can prove to be very time consuming and costly, so registering your land can be an important part of the Will making or estate planning process.

So the 25% discount is only if the owner of the unregistered land voluntarily registers their title?

Yes, the discount has been on offer for a few years now but we have no indication of how long it will be available.

Other than saving time and money, are there any other advantages to voluntary registration?

Yes, firstly a registered title is guaranteed by the state. It means that you have proof of what is yours held securely, clearly and easily accessible. The “state guarantee” means that anyone suffering a loss because of information held and provided by the Land Registry may be able to claim compensation for that loss. Additionally, I can confirm from my own cases that it can also reduce boundary disputes, help protect against squatters and other adverse claims on property and can go a long way towards preventing property fraud


Property fraud?

It is a broad subject to discuss within the constraints of this article but perhaps we can cover a few points that may increase awareness.
Property fraud normally describes the fraudulent transfer, or securing of finance, usually a mortgage, on a property. Properties particularly at risk are often rented, unoccupied with the owner perhaps abroad, where the owner is infirm or in nursing care or in cases of relationship breakdown. The fraudsters will often use forged, or sometimes original, Deeds and by the time the householder becomes aware of the fraud they have disappeared with the money.

So what can be done?

Once a property is registered, there are certain steps that can be taken to prevent fraud if it is felt to be a risk. You can request that any notification to you of a change of the register as it relates to your property should be sent to up to three addresses, one of which can be your solicitor. This helps to guard against interception of mail. You can also put restrictions on your title, which means that the Land Registry will not register any transaction affecting the property without confirmation from a solicitor that they have checked the identity of the person who has signed the relevant deed. If you do not live in a property that you own, one final but simple point to help prevent fraud is to make sure you keep Land Registry informed of your current address so that you actually receive any notifications of registry changes.


We will be back in the next “Roundabout” looking at another legal issue

Finally I must as usual point out that this article is not intended to be comprehensive or to provide specific legal advice. It should not be relied upon in the absence of specific advice given in relation to particular circumstances.

Graeme Barber
Bowcock Cuerden LLP
01270 611106
Email: information@bowcockcuerden.co.uk