HM Land Registry is responsible for providing a reliable record of the ownership of land and property and any other interests that affect it. HM Land Registry’s register is known to contain evidence of ownership and other interests for approximately 85% of the land and property in England and Wales.

It is now compulsory to register all land and property at HM Land Registry upon certain triggering events. These events include any land or property that you: 

• buy 
• are gifted 
• inherit
• exchange for other land or property; or 
• mortgage

The benefits of registering voluntarily

So, is there any benefit of going to the expense and effort of registering your land and or property voluntarily?

HM Land Registry charges a fee for registering property or land based on its value, which ranges between £40 and £980. As a motivation tactic, HM Land Registry offers a 25% reduction on their charges if applicants apply to register property or land voluntarily. This is a clear benefit for voluntary registrations.

Delays due to compulsory registrations

Despite this offer to reduce HM Land Registry’s charge, many owners wait until they must compulsorily register their land or property. 

HM Land Registry is currently quoting an average completion time of just over six months for straightforward first registrations. Such a period can drastically delay proceedings.  Especially where some buyers’ solicitors are not conversant with unregistered land or property. They may insist the owner(s) register(s) it before they advise their clients to proceed with the purchase. 

It is not uncommon, therefore, for some purchasers or developers to refuse to deal with unregistered land or property. They will either refuse to purchase it entirely or refuse to purchase it until it has been registered. This could leave the owner(s) waiting an extra six months, or even potentially losing a sale.

Adverse possession

There is also the added risk that the rules of adverse possession (i.e. someone claiming rights over your land or property) are different for unregistered land or property. For example, if your land or property is unregistered, you may not have the automatic right to object to someone’s adverse possession claim over it.

HM Land Registry’s register is a public record and anyone can pay to obtain a copy of your title. All titles contain the names(s) of the owner(s) and plans of the boundaries. Titles typically also contain the previous price paid for the land or property. 

Developers looking to develop a certain area of land or property often utilise this benefit. They simply go to the register to gain a copy of the title, and the name(s) and contact details of the owner(s). Developers can then make a direct approach with an offer.

Therefore, it seems sensible for anyone who is seeking to sell, develop or protect their land or property to register it voluntarily and gain a head start in the process. Such registration also gives an opportunity to deal with any irregularities in the title at leisure. In some instances, it can even lead potential buyers or developers directly to your door or deter adverse possessors from making a claim.

For more information about land or property transactions or registrations, please contact Cara O’Donoghue on 01206 217311 or cara.odonoghue@birkettlong.co.uk or Emma Coke on 01206 217629 or emma.coke@birkettlong.co.uk.