Should I buy an unregistered property?

Most property in England and Wales is registered with the Land Registry. This means that it has a title number and the legal owner is formally noted in the proprietorship register section of the official Land Register. However, around 13% of property remains unregistered. We look at what this means and answer the question: Should I buy an unregistered property?

At Lockings Solicitors, our property lawyers can provide expert advice in respect of unregistered property. We hold the Law Society’s Conveyancing Quality Scheme accreditation in recognition of our legal expertise and high service standards.

If you want to buy unregistered property, we can talk through the implications and ensure that you are happy to proceed.

We have provided conveyancing in East Yorkshire and beyond for many years and have a reputation for excellence. In particular, we are known for the outstanding client care we provide and we are frequently recommended by our clients to their friends and families.

We offer a FREE initial chat so that you can ask us any questions you may have about buying an unregistered property. Call us on 01482 300 200, email us at welcome@lockings.co.uk or fill in our Free Online Enquiry and we will call you back promptly. We have offices in Beverley, Hull and York and represent clients across the East Yorkshire and York area.

What is property registration?

Property registration is the entry of a property onto the Land Register, an official list maintained by HM Land Registry. When a property is registered, it is given a title number and its details are listed. Once registration has been completed, a copy of this information is available electronically.

The details included on the Land Register when a property is registered include:

• The name of the owner
• Whether the property is freehold or leasehold
• The class of title, such as ‘title absolute’, which is the best type of ownership
• A description of the property, usually its address if it is a house or flat
• An official plan of the property
• Information about any rights or restrictions that affect the property
• A note of any charges or mortgages over the property

Why is property registered?

It is preferable to have a property registered wherever possible. In fact, since 1990, it has been compulsory to register property when it is sold or mortgaged. Property can also be registered voluntarily at any time and the Land Registry offers a reduced fee to encourage registration.

One of the main reasons for registering a property is to provide some protection against fraud. It can be harder for criminals to commit fraud once a property has been registered and for this reason, it is sometimes the case that unregistered property is targeted.

If your property is registered, you can ask the Land Registry to set up an email alert so that you will be notified if certain applications are made, such as an application to register a mortgage.

You also have the option of registering a restriction against your property so that the Land Registry will not register any transaction without a solicitor certifying that it has been authorised by you.

Registration will usually make the sale process faster. If a property is unregistered, the buyer’s solicitor will have more work to carry out to check that the title is legally sound.

Once a registration is completed, it is simple to prove your ownership by obtaining an official copy of the title from the Land Registry.

If a property is unregistered and the title deeds are lost or destroyed, it can be very difficult to reconstitute the title and prove ownership. Registration eliminates this risk as the Land Registry will keep an electronic copy of all relevant documents.

Should I buy an unregistered property?

If the seller’s solicitor has all of the relevant title deeds for the property proving their client’s ownership, then buying unregistered property can be relatively straightforward.

They will provide an epitome of title, which is a list of all of the title documents needed to demonstrate that their client owns the property, together with a copy of those documents. They will also include any documents that create rights or restrictions over the property.

We will need to carry out more work than usual to check that the title is sound, but our property team includes solicitors with expertise in dealing with unregistered land and we are used to dealing with complex transactions.

If you are considering buying an unregistered property and you would like to talk through the process, please feel free to call us. In many cases, you may not find out that it is unregistered until your conveyancer receives the initial contract package at the start of the conveyancing transaction.

Can I get a mortgage for unregistered property?

Mortgage lenders have a list of criteria that must be met before they lend and it is your conveyancer’s job to ensure these are satisfied. This includes checking that the property has a sound legal title.

If you are purchasing unregistered property, we will make sure that the seller’s solicitor proves the title and advise your lender of this. Once your purchase and mortgage are completed, we will apply to the Land Registry to register the property.

How does a property purchase for unregistered property work?

The seller’s solicitor will send us the contract package in the same way as if the property was registered. Instead of a copy of the entries on the Land Register, it will include copies of all the documents they hold that are necessary to prove that their client is the legal owner.

This starts with a document referred to as the ‘root of title’, which is usually a conveyance that is at least 15 years old. It must deal with the whole of the property, clearly describe the property, refer to any rights or restrictions that apply to the land and include a plan.

Any documents referred to in this conveyance must also be included. If the property has changed hands since the date of the conveyance, all subsequent transfer documents must be provided. We will then go through all of the information and carry out relevant checks and searches.

Once the title has been established, the rest of the conveyancing process will take place as normal, including searches, raising enquiries of the seller’s solicitor and reporting to the mortgage lender.

Following completion, the seller’s solicitor will send us the title deeds. We will complete an application to HM Land Registry asking them to register the property. They will also register your ownership and any mortgage that you have taken out.

The first registration process is lengthy and sometimes the Land Registry decide to inspect the property before completing the registration. If they do, they will charge you an extra £40 for this.

How long does it take to buy unregistered property?

It can take longer to deal with the initial due diligence work in respect of unregistered property if there are queries to be raised. It is important that we ensure that all of the original documents are available and that they adequately prove the title. Because we may need to ask more questions and you may need to make additional checks of boundaries, the process is less straightforward than with registered property.

Our experience means that we are able to deal with difficulties effectively and ensure that the purchase process goes as smoothly as possible. We will submit the first registration promptly and work with the Land Registry where necessary to answer their questions and provide any information requested.

Contact our East Yorkshire and York area property solicitors for buying unregistered property

If you are thinking of buying unregistered property, call us today and we will be happy to help.

You can ring us for a FREE initial chat on 01482 300 200, email us at welcome@lockings.co.uk or fill in our Free Online Enquiry and we will call you back promptly. We have offices in Beverley, Hull and York and represent clients across the East Yorkshire and York area.