Land Registration Reforms - What You Need To Know

Originally published in January 2004

Introduction

The Land Registration Act 2002 ("the Act") came into force on 13 October 2003.

The main elements of the Act are:

1. More interests in land to be registered

The law has changed. Leases with a term in excess of 7 years now have to be registered where previously the threshold was 21 years. This means most commercial leases will have to be registered including

assignments of existing leases with more than 7 years left to run; and

reversionary leases (of any length) that take effect more than 3 months after the date of the grant.

2. Leases and mortgages are open to the public

The Land Register has been open to the public for many years but for the first time copies of all documents, including leases and mortgages, are available to third parties. Any document received at the Land Registry after 13 October 2003 is available to the public immediately and from October 2005 documents registered before 13 October 2003 will also be available (although in both cases an application can be made for retrospective EID-see below).

Tenants negotiating leases will be able to obtain copies of completed registered leases and see what concessions have been granted to their neighbouring tenants. Lenders may be concerned that sensitive information regarding lending facilities will now be in the public domain. It is possible to apply for a blank-out from public view of any sensitive provisions in a document if they are prejudicial, because they are either commercially sensitive or likely to cause unwarranted damage or distress to the applicant. The landlord would need to make the application or the tenant may on behalf of the landlord. If the application is successful (and this is at HM Land Registry's discretion) then the document will be designated an "Exempt Information Document" (EID). The public can then generally only obtain an edited copy of the document. However, it will be possible for a member of the public to apply for a full copy of an EID if it can be demonstrated that the information is not prejudicial or, if it is prejudicial, that its exposure will be in the public interest.

3. The registration of easements and disclosure of overriding interests

Easements

The majority of easements granted over registered land need to be registered against both the land that has the benefit of them and the land over which they pass. This will then bind third parties and ensure that the easements are legal...