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Unregistered property and land – to register or not to register?

4 October 2024

Unregistered Land Image

Unregistered land is an asset that has not yet been registered with the Land Registry. This does not mean that the land (which also includes any buildings or property on the land) is not owned. It simply means that the details of the land, including who owns it, are documented in title deeds but not centrally registered at the Land Registry.

We have acted for several clients with unregistered land recently. In all cases, the lack of registration caused additional complications and worry at a difficult time.

Why register your land?

According to Land Registry records there are over 25 million registered titles, which equates to around 85% of land and property in England and Wales. Much of the land and property that remains unregistered is owned by the Crown, the aristocracy and the Church, as it has never been sold, which is one of the triggers for first registration.

There are many advantages to having property registered with the Land Registry. It protects your interest as the owner and makes any future sale, re-mortgage or inheritance a more straightforward process.

Land registration ensures ownership information is stored safely and centrally

Land ownership is registered in title deeds. Title deeds may be held by a bank or building society, if a mortgage or loan is in place, by a law firm for safekeeping, or by the individuals (or company) who own the land.

However, title deeds can easily be lost or destroyed accidentally whether by flood, fire or human error.

Registering land means that necessary title documents will be centrally held by the Land Registry. This negates the need for original title deeds to be kept safely and mitigates the risk of loss or damage.

When dealing with registered land and property, the sale or funding process is much simpler and quicker than dealing with unregistered property.

This can be particularly important if, for example, you need to look to sell property or take equity release to secure care funding for you or elderly relatives. Where title deeds have been lost or destroyed, as had happened with recent clients, the sale process suffers from additional delays and additional worry at a time which is already very distressing.

Land registration protects you from fraudsters

Registering land means you protect your asset from fraudsters who may seek to claim possession of it, either by making an application to the Land Registry to register it in their name or by taking physical possession of it.

Once land is registered, you can register online for “property alerts”. This is a free service and you can register for any property (up to ten titles). If you have elderly or infirm relatives who need assistance, it is possible to register on their behalf.

When you register for alerts, if the Land Registry receives an application for registration, such as a transfer or mortgage, the person registered for the alert receives an email from the Land Registry advising them that an application has been received.

If you do nothing, the application will proceed but if you (or your family member) were not expecting any applications to be registered, you, or they, would have the opportunity to contact the Land Registry to ascertain the nature of the application and, therefore, to prevent a potentially fraudulent activity.

Fraudsters are becoming increasingly clever and taking the steps above will help protect, as far as possible, what is likely to be your most valuable asset.

Land registration ensures proper inheritance

Some people refer to unregistered land as “no man’s land”, which suggests that it is not owned by anyone. However, all land is owned by someone. It may simply be that the legal owner cannot be found. If a person dies without leaving a Will or blood relatives, land and property can pass to the Crown by law – known as Bona Vacantia. Registering land with the land registry reduces the potential for this to happen.

A renewed focus on land registration

Because of all the benefits of land registration, the Land Registry is hoping to achieve comprehensive registration by 2030.

To encourage registration, there is currently a 25% reduction on the Land Registry registration fee for voluntary first registrations. If you own unregistered land, this discount is another reason to make an application for registration sooner rather than later.

You can check if you land is registered at https://www.gov.uk/search-property-information-land-registry.

We are very experienced with the nuances of unregistered land and property and can help answer your questions and help with applications for first registration.

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