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Land Registration

The Land Registration Act 2002, came into force on 13 October 2003. It has many implications for commercial landlords and businesses occupying properties under commercial leases.

One of the major changes are that after 13 October 2003, all new leases with terms over 7 years or existing leases sold or assigned with 7 years left to run must now be registered with Land Registry. Not only will the property acquire its own leasehold title number but it will be noted on the Landlord's freehold title. This will bring many more High Street shops, cafes, restaurants, industrial units and offices onto the Register.

You have 60 days from the effective date to register the lease

As part of the registration a compliant Lease Plan of the lease demise must be submitted. In order to be compliant the plans must be drawn to a metric scale (normally 1:100 or 1:200), have a scale measurement bar, have the scale noted on the plan, a 1:1250 scale location map (for urban areas) full address including post code and a north point. The internal layout of the premises are not necessary, however indicative locations of communal areas and adjacent stair lobbies should be provided for orientation.

Subject to a few minor exceptions all leases granted on or after 19th June 2006 and that require registration at the Land Registry will have to contain certain 'Prescribed Clauses'. They are a set of definitions dealing with the basic terms of the lease that the Land Registry need to know for the purpose of registration. They have to be set out in a particular way or else the Land Registry will refuse registration.