Anonymous: Our client owns 2 neighbouring properties and wishes to update the title plans so as to "swop" some of the garden land to one property and vice-versa. We appreciate that he cannot transfer the respective areas of land to himself by way of a TP1, and the titles for the x2 properties may need to be split re the garden land areas. How can this be done please? What is required to arrange this and what are the Land Registry fees for arranging the same?
Adam: Generally speaking a land/property owner can do as they wish with regards swapping land/reorganising physical features. The changes are then only registered when, for example, they sell/transfer (as appropriate), so you have a transfer of part to a buyer who then registers.
It is, though, possible to split or subdivide a registered title, however, if it is not as a result of a sale/transfer, it would be at the Registrar's discretion, and you would have to disclose your reasons for the request.
If you wish to lodge an application:
- You must apply on form AP1, notifying us that a transfer is not required.
- You must explain in a covering letter the reason why sub-division is required.
- You will need to clearly identify the extent on a plan that complies with our registration requirements. You can find out information about plans in practice guide 40: HM Land Registry plans: guide overview.
- If the land is subject to a mortgage, consent to the subdivision of title must be obtained from the lender.
- There is a fixed fee.
We will only consider the request once a formal application is made, and we may refuse to proceed with the application if we consider that dividing the title would not be desirable.
Anonymous: With regard to the staircasing rights of the tenant under a shared ownership lease:
A. what entries (if any) will be shown on the register to record such rights (assuming they are noted in Panel LR9.1 of the shared ownership lease)?
B. where the lender requires the tenant/borrower to enter into a Deed of Assignment of these staircasing rights to add to the security of the legal charge, is that Deed registrable and if so, what entries would be made on the register?
If these answers are covered by any of your Practice Guides would you mind indicating which Guides/Sections are relevant please?
Adam: We will not make an entry in respect of the tenant’s right to purchase a further percentage of the equity.
However, we may make entries in the landlord’s title in respect of other connected options in the lease such as an option for a tenant to purchase the reversion or an option for a tenant to take a conventional lease, amongst others.
Without considering the deed and understanding its full effect, we cannot provide a definitive response. However, as we would not make an entry as to the tenant’s right to purchase a further percentage of equity, it is unlikely that we would enter details of the assignment of that right in the register. Although if the deed operates as a variation to a registered charge or is supplemental to the charge but does not vary the terms of the charge, we may make an entry. These entries would refer to the terms of the charge being varied (or expressed to have been varied), or would refer to the deed being supplemental to the charge. Both entries would include details of the deed, including the date and the parties.
If such a deed is submitted for registration, we will consider it on its individual merits, but you may wish to consider our ‘Ask for Guidance ’ service.
The following practice guides may also further assist.
Conveyancing Direct: I am acting in the purchase of a property. There are two legal proprietors. The seller's lawyers have advised that one of the legal proprietors is acting for themselves and also for the second proprietor as their attorney under the power of attorney. There is no Form A restriction on the title. Can the one proprietor act in their own capacity and in the capacity of attorney also?
Adam: Yes, the proprietor can act in both their own capacity as joint registered proprietor and also in their capacity as attorney for the other registered proprietor. But practice guide 67 should be considered as separate evidence of identity will be required for both the donor and the attorney.
Additionally, as both proprietors will be holding the legal estate as trustees, as all joint proprietors are, we must be satisfied that the donor of the power owns a beneficial interest in that property unless contrary intention is shown (section 1(1) of the Trustee Delegation Act 1999) and unless the power is a Trustee Act 1925 power.
If this is the case, a written statement by the attorney confirming the donor had a beneficial interest in the property at the time of the date of the transfer would be acceptable, or the deed could include such confirmation in the additional provisions panel. Alternatively, a conveyancer could provide a certificate from their own knowledge of the facts that the donor did have a beneficial interest in the property at the date of the deed. Practice guide 9 provides further details.
Finally, although there is no Form A restriction in the register, any other restrictions will still need to be considered and complied with.
