Don’t Delay, Register Today! Why Land Registration at HM Land Registry Matters
While registration may seem like an administrative task and an additional financial burden, the benefits of voluntarily registering your land are significant for the security of your land. Whilst the risks of not doing so grow harder to ignore.
The benefits of registering your land.
- Legal proof of ownership
Once land is registered, your title is legally recorded in a central database at the HM Land Registry. Registration can mean peace of mind. If any disputes arise relating to the ownership and responsibility of any property boundaries, it can in some cases be resolved more easily as plans of the property will be stored online.
The digital system means your title and documents are accessible online 24/7. This simplifies property transactions, whether this is selling, purchasing or remortgaging as solicitors can access this system and download all necessary documents to progress the transaction forward. Both solicitors and clients no longer need to root though old, fragile deeds to determine which ones are needed for that matter.
- Extra Protection
Title fraud is a growing issue, and criminals can attempt to impersonate owners of unregistered land to fraudulently sell or mortgage the property. Registered land has the benefit of added layers of security from the Land Registry.
Registered property can also provide additional security and protection against an adverse possession claim as the Land Registry already registered the property in your name. The rules around adverse possession are complex, however, generally it is much harder to displace the owner of registered land.
- Voluntary Registration Discount
If your property falls within the category of voluntary First Registration your Land Registry fee can be reduced by a minimum of 25%. However, this is discretionary by HM Land Registry and can therefore change.
The following interests can be voluntarily registered (subject to some exceptions):
- Unregistered freehold;
- Unregistered Leases with more than seven years to run;
- Unregistered Rent charges;
- Unregistered Franchises; and
- Land covered by internal waters adjacent to England or Wales
How long will registration take?
Due to a growing backlog at the Land Registry, applications are taking a significant amount of time to be processed and registered. It is increasing that when you sell unregistered land, the buyer’s solicitors will advice that they want it registered prior to completion. This could therefore cause frustrating delays if the application is not expedited, and so any anticipated future sales or gifts, it’s better to register now, rather than later.
As a buyer, if you decide to register this after completion, there is the risk that if the sellers pass away or lose capacity within this time, issues with executors / attorneys signing documents on their behalf or replying to requisitions raised by the land registry could arise.
As mentioned, when there is a significant change in ownership, a compulsory registration is triggered under the Land Registration Act 1925. These transactions typically involve a sale or gift of property. Compulsory registration does not benefit from a reduced fee and therefore we encourage where possible to voluntarily register your property.
What if a dispute arises?
With unregistered land, boundaries and ownership history may not be clear. This increases the likelihood of disputes with neighbours / potential buyers which could become costly with additional legal fees.
What if I’ve lost my deeds?
Paper deeds are easy to misplace. Metcalfe Copeman and Pettefar hold many deeds in our strong room, and it’s suspected that clients hold deeds places long forgotten. Once your deeds are gone, proving ownership becomes complicated, costly and a time-consuming process for both us and you. Many owners may discover these lost deeds when it’s too late, when the application has been submitted, and the costs have been paid.
Why register?
Land registration isn’t just another legal burden, but a step towards protecting your property and your legacy. Whether you’re a homeowner, landowner, or executor managing an estate, voluntary registration is a smart and forward-thinking decision.