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Welcome to issue 40 of Practice and Process. As you'll see, we've amended a wide range of our practice guides to reflect how applications should be made using our digital systems. Colleagues who would benefit from keeping up to date with advances in digital processes and more can subscribe here.

(16.01.2020) RESTRICTION: No disposition of the registered estate, other than a disposition by the proprietor of any registered charge registered before the entry of this restriction, is to be registered without a certificate signed by the applicant for registration or their conveyancer that written notice of the disposition was given to xxx.

Is this for the seller to remove before completion or can the buyer serve notice to 'xxx' and upload this with their application for this to be removed?

Anonymous: If a registered proprietor contractually agrees to a Form L restriction (e.g. as part of a litigation settlement), given there is no interest in the property, does this actually bind a purchaser? Presumably the restriction cannot be overreached because there is no beneficial interest to overreach. Could the new purchaser simply apply to the Land Registry to have it removed as no longer relevant? If not, this seems to provide a level of protection where there is no property interest that is greater than that provided by some charges (albeit with no power of sale).

Adam: A standard Form L restriction is generally applied for where a certificate of compliance with provisions of a specific document is required. If the registered proprietor consents to its registration, then the title is bound by the terms of that restriction.

A Form L restriction cannot be overreached and an application to cancel or withdraw it would be required.

Section 3.7.3 of practice guide 19 contains information relating to the cancellation restrictions and confirms that we will cancel the restriction if the application is accompanied by evidence to show that the restriction is no longer required. If anyone is referred to in the restriction and if an address for service is listed for that person, we will usually notify them of the application and give them an opportunity to object to the application before cancelling the restriction.

Section 3.7.4 contains information relating to the withdrawal of restrictions, which would usually be an application made by the beneficiary of a restriction.

Anonymous: We act for the buyer of a long leasehold flat. All the lessees own the freehold by shares in the freehold limited company. The Seller of the flat is a limited company incorporated in Jersey. Its address in the Proprietorship Register gives a Jersey address and also c/o an English firm of solicitors. The Proprietorship Register contains the following:

RESTRICTION: After 31 January 2023 no disposition within section 27(2)(a), (b) (i) or (f) of the Land Registration Act 2002 is to be completed by registration unless one of the provisions in paragraph 3(2) (a)-(f) of Schedule 4A to that Act applies.

We have asked the sellers solicitors to let us have a copy of the proposed certificate which will be acceptable for the Land Registry to satisfy the Land Registry. They say that the Seller is registered in the Overseas Entity Register and that should suffice. Will any evidence be required from us and if so what?

Adam: Practice guide 78: overseas entities sets out the evidence required for dispositions affected by the Economic Crime (Transparency and Enforcement) Act (ECTEA) 2022 as well as exceptions and exemptions and relevant scenarios which may arise. Section 3.4.2 sets out our requirements to register a disposition by an overseas entity caught by ECTEA 2022, including the requirement for a valid OE ID at the time of the disposition. If a valid OE ID for the overseas entity is not provided, or the overseas entity is unable to rely on one of the permitted exceptions explained in section 3.5 of practice guide 78, your application will be rejected.

See practice guide 78 for further details.

Anonymous: What scale fees are used when registering Interim Staircasing and Final Staircasing?

Adam: An application to record purchase of further shares (“staircasing”) would be treated as an application for alteration which would attract a fixed fee of £20 where the application is by electronic means, or £40 where the application is by other means.

However, if you are applying for a transfer of the freehold of the shared ownership house on final staircasing then Scale 1 or Scale 2 fees will be required, depending on whether there is any consideration in the transfer. There is usually no consideration, meaning the fee will be payable under scale 2 on the value of the freehold subject to a long lease.