Unregistered title or unregistered land, is land or a property that is not registered with the Land Registry (the UK’s central registry system).
Around 89% of land in England and Wales is now registered, so it’s fairly unusual to come across unregistered land. But if a property hasn’t changed hands in the last 40 years, there’s a possibility that it may be unregistered.
If you own one of those properties that has slipped through the registration net so far, should you apply to get it registered?
While it’s not necessarily mandatory, it is a good idea. In this blog we look at the benefits of registering your land or property.
The Land Registry keeps your title documents safe
When land is unregistered, the proof of who owns the property is held in paper title documents and deeds. As is the case with any important information held on paper, there’s always a risk that it will be destroyed or damaged in some way.
Registered title however is held electronically, so there’s no risk of your proof of ownership being compromised by fire or water damage.
Greater clarity with registered land
Paper title deeds are not always clear when it comes to boundaries. When you’re looking at the documents relating to unregistered land, it can take some time and effort to discern who owns which parts of the land, and if there are any restrictive covenants, easements or charges on the land.
But with registered land, all of that information is clearly visible on the Official Title entry.
Risk of third party interference with unregistered land
It may seem unlikely, but there’s a risk that a third party can claim ownership over unregistered property. It happens if someone has used the property for an uninterrupted 12 years or more, and the true owner hasn’t objected, or taken payment. You might know this scenario by the name of ‘squatters’ rights’, or to give it the legal name, the occupier claims adverse possession.
This situation can happen when the owner of the property is abroad for long periods of time, or the property is vacant for a while for any other reason.
Unregistered land is also open to the possibility of fraud. The Land Registry does not necessarily have up to date details of the owner of the property, and criminals have been known to swoop in a sell a property either by registering it in their name, or stealing the identity of the owner.
A speedier conveyancing process once land is registered
If you’re selling property that is unregistered, you have to show evidence of title from at least 15 years ago, up until the present day. That often requires a long paper trail for unregistered land, with much time and cost spent searching for and reviewing the relevant documents.
With registered land, you simply download a copy of the official title to prove ownership, and that part of the puzzle is completed in seconds.
Protects your property on inheritance
A good reason for registering your property before you die is to help out your family. Proving ownership of a property can be a headache for executors, when the property is unregistered. They might not know where all of the important title deeds and documents are kept, and which documents are relevant to the property.
Reduced fees for voluntary registration
If you register the property voluntarily, the Land Registry will give you a 25% reduction in fees.
There is always a fee to pay for registering a property, and the fee varies depending on the value of your property.
To give you a ballpark figure, the cost of registering a freehold property worth £400,000 is £330. But with the reduction you pay £250 to register it voluntarily.
How to register land
The short answer is that we can register your property for you. Please get in touch if you’d like us to help.
To give you an idea of what the process involves, there’s an application form to fill in, plus documents to provide. See the full rundown of the process on the Government’s website.
https://www.gov.uk/registering-land-or-property-with-land-registry/register-for-the-first-time
It is quite technical, so having a qualified conveyancer do it for you can take the stress out of the process. We’ll work together to make sure the application is correct and complete as quickly as possible.
A quick word of caution though – typically, the process is quite slow. It can take a year or so from start to finish. We understand that you’ll need to register the property more quickly if you’re in a rush to sell. In those circumstances we can request a speedier process from the Land Registry and reduce that timeframe to a couple of months.