Urban properties

Following a review we have changed practice to reduce problems that can be created by restrictions on leasehold registered titles, such as when:

  • the restriction calls for the consent or certificate of a particular named lessor or management company, and that lessor or management company has changed
  • the lessor or management company required to give the consent or certificate under the terms of the restriction has been dissolved.

We believe we can reduce the circumstances in which restrictions on leasehold properties cause these problems by:

  • simplifying the process for cancellation or disapplication, where the lessor or the management company has changed or has been dissolved, and
  • providing guidance to lessors, lessees and conveyancers that help them to apply for a form of restriction that will not create difficulties if the lessor or management company changes.

Please see our new supplement to Practice Guide 19 – Notices, restrictions and the protection of third party interests in the register which contains points to consider when applying for a leasehold restriction and provides guidance as to which restriction to apply for.

It recommends a restriction in standard Form PP which can be completed so it does not require the certificate of a named lessor or managing agent. This should avoid unnecessary requisitions in future should, for example, the managing agent change.

The supplement also contains guidance for complying with leasehold restrictions, applying to cancel or disapply them and how to deal with circumstances where obtaining the consent of a management company proves difficult, such as where the company has been dissolved.

Project Team Leader David Linn said: “We carried out extensive stakeholder engagement ahead of this change of practice and the response from those who replied was very positive.

“By streamlining our process this change is designed to benefit our customers as well as Land Registry and will reduce unnecessary requisitions and subsequent delays for our customers in future.”

The information in the supplement guide does not apply to cancelling such restrictions on freehold titles, because the burden of freehold positive covenants does not run with the land and there are no equivalent provisions to those contained in the Landlord and Tenant (Covenant) Act 1995.

Gavin Curry
By Gavin Curry,
Digital Communications and Editorial Officer at HM Land Registry