Land Registration: A Guide To Compulsory And Voluntary Land Registration
HM Land Registry and unregistered properties
HM Land Registry are responsible for documenting the ownership of all property and land in England and Wales. Compulsory registration was initially introduced by way of the Land Registration Act. The first area which was subject to compulsory registration was Eastbourne, which now stands at 95% registered. In 2019, Land Registry reported that 14% of freehold land remains unregistered, but they hope to achieve comprehensive registration by 2030.
There are two ways of registering property; compulsory registration is legally required once a trigger event occurs, whilst voluntary registration is an optional process initiated by property owners.
Compulsory land registration
Properties will be unregistered because a ‘trigger’ event has not occurred since land registration became compulsory. Registration becomes compulsory for unregistered freeholds or unregistered leases where there was a transfer of ownership (including through a sale, inheritance or via a gift), a mortgage or the death of the sole proprietor, these are referred to as trigger events. For first registration to be compulsory, the trigger event must have been made in one of the following ways:
- For valuable or other consideration. This catches any transaction at a negative value, but it does not include transfers within marriage.
- As a gift
- Required by a court order.
What is the process for compulsory registration?
One of the most common reasons why a property remains unregistered is where an elderly couple bought it before registration was compulsory, and there have been no trigger events.
To register a property, a conveyancer will submit a bundle of deeds and documents to Land Registry, called an epitome of title. These documents explain the history of the land ownership as well as any rights or restrictions which run with the land, so the Land Registry can include them in the new title document. These will be old and may be time-consuming to read, nevertheless, it is important that the conveyancer is aware of all restrictions since the purchaser of the property will be liable to adhere to these in the same manner as the original owner.
If you own an unregistered property, you do not have to wait for a trigger event, you can voluntarily register your property.
Voluntary land registration
If a trigger event has not yet occurred, you can choose to voluntarily register your property. This process is the same as compulsory registration. The Land Registry fee payable upon voluntary registration is cheaper than required for compulsory registration. Voluntary registration will streamline the conveyance process if you come to sell, transfer or gift your property in the future.
If you consider that your property may not yet be registered and have any queries or questions, contact us to chat through any concerns. You can book a no-obligation no-fee consultation to answer any questions you may have.
Why is land registration important?
It is in the interests of all property and landowners that Land Registry’s records are a complete and accurate reflection of ownership, so restrictions, rights and boundaries can be easily identified with minimum inquiries.
Unregistered titles are complex and risky as old deeds and documents are easily lost, damaged, or destroyed, whilst registration creates a permanent record. This permanent record protects your interest in land/property as it is more challenging for someone to claim adverse possession of registered land than unregistered land. Your title in land is protected by the state which means compensation is payable should a mistake mean the registered proprietor suffers loss. Registration of property, whether compulsory or voluntary, is advantageous in providing security, protecting your interest and streamlining any future sale of your house or land.
