Why hasn’t the property been registered?

Around 15% of the land in England and Wales are unregistered. Whilst there is an owner, the details have never been officially recorded at the Land Registry. There are a few factors contributing to the existence of unregistered land, such as:

1. Historic Ownership: Properties can remain under the same ownership for many decades as it was not until the 1 December 1990 that registration became mandatory. Even then, previously unregistered titles did not need to registered unless a transaction ‘triggers’ first registration. This could be a sale, gift, re-finance, inheritance, or a new lease of 7 years or more.
2. Lack of Awareness: Some property owners may simply be unaware of the processes and benefits involved in registering their land.

Does this mean there will be issues selling/buying?

Owning unregistered land should not be feared, but it does come with its complications:

1. Proof of Ownership: Owners of unregistered land must rely on physical deeds to prove ownership. These documents, often old and fragile, must be kept safe and accessible. An unbroken chain of ownership must be shown for at least 15 years.
2. Complexity: Selling or mortgaging unregistered land can be more complex and time-consuming. Uncertainties may arise regarding ownership and potential undisclosed interests.
3. Cost: The Land Registry’s fees for dealing with unregistered land is often double that of a standard residential transaction.

How do you go about registering the land?

1. Locate the Title Deeds: Gather all the physical deeds and documents relating to the property’s history.
2. Instruct a Professional: Engaging a qualified professional is highly recommended. They can navigate the complexities of the registration process and ensure the application is submitted correctly.
3. Submit the Application: An application will be made to the Land Registry using a form called FR1. This is accompanied by a document list (DL) showing the evidence of ownership.
4. Land Registry to Review: This the longest part of the process, and the Land Registry will take some time to review the application and documents provided. If any additional information or clarity is required, the Land Registry may raise additional questions or requests to resolve this.
5. Issuing the Title Deeds: Once satisfied, the Land Registry will issue a unique Title Number and register the land on their central data base. This will make the documents readily available online.

What are the benefits of registration?

Registering the land can offer benefits:

1. Security of Title: Registering the land at the Land Registry can help protect against property fraud as you will be notified if any third-party attempts to claim a right over your land.
2. Resolution of Disputes: Registering the property makes it easier to identify the extent of the property boundary.
3. Simplified Transactions: Future sales, mortgages or transfers of the property become more straightforward, as the ownership and interests are clearly documented.

Conclusion

While owning unregistered land may come with certain challenges, the process of registration can provide peace of mind and numerous practical benefits. For detailed guidance, consulting a qualified professional is always a wise step.