Manchester Conveyancing Solicitors | Ford Banks Irwin Solicitors - The Property Lawyers in Manchester on Commercial Business Leases
Please note: Not to be used or relied upon without legal advice. These notes are for illustration purposes ONLY
continued from page 17 . . .
Leases - Extension of Leases
New Lease made subject to old Lease
If the new Lease is made expressly subject to the old Lease by Conveyancing Solicitors and Property Lawyers, Land Registry will accept that surrender of the old Lease does not occur.
In such a case the new Lease, as a Lease of the lessor's reversionary interest, is not inconsistent with the old Lease. Land Registry will not close the existing leasehold title.
Although this approach may have advantages, the existence of concurrent Leases, with the same proprietor, registered under separate title numbers may be confusing for those subsequently dealing with the title.
If new Conveyancing Solicitors and Property Lawyers are employed on a sale and the position is not made clear to them, difficulties often result. The position may also be difficult to explain to a purchase.
When registering such a new Lease, Land Registry will have regard to the possibility that the proprietors of any charges affecting the old Lease have an interest in the new Lease. They may have such an interest under either:
- the terms of their charge (mortgage), or
- general Law.
If making an application to register such a new Lease, Conveyancing Solicitors and Property Lawyers need to lodge any charges affecting the old Lease or list them in panel 10 of form FR1 or panel 11 of form AP1. Where appropriate, an entry along the following lines will be made in the charges register:
'The Land is subject to such rights as may be subsisting in favour of the persons interested in a charge dated (date) made between (parties) of the Lease dated (date) referred to in the schedule of Leases hereto'
NB: This procedure only applies to Lease that come into effect immediately.
New Lease commencing on a future date - Land Registry application
Conveyancing Solicitors and Property Lawyers need to lodge the application in either:
- form FR1 with form DL, in duplicate, if the application is for first registration (rules 233 and 24(1)(d) LRR 2003), or
- form AP1 if the Lease is out of a registered title
Conveyancing Solicitors and Property Lawyers will need to lodge, as appropriate:
- the new Lease together with a certified copy;
- the appropriate SDLT certificate
the consent of the lessor's mortgagee, if required. Where the consent is not lodged, Land Registry will make the following entry in the property register of the new title:
'The title to the Lease is, during the subsistence of the charge dated . . . in favour of . . . affecting the lessor's title (and to the extent permitted by law, any charge replacing or varying this charge or any further charge in respect of all or part of the sum secured by this charge), subject to any rights that may have arisen by reason of the absence of chargee's consent, unless the Lease is authorised by section 99 of the Law of Property Act 1925'
Land Registry will not make this entry if the Conveyancing Solicitors and Property Lawyers lodge a coy of the mortgage deed, and confirm that the granting of the Lease was permitted by the terms of the mortgage (by referring to the relevant clause in the deed) and that the mortgagee's consent was not required.
A consent is always required where there is a restriction in favour of the lessor's mortgagee on the lessor's title.
- the consent of any superior lessor, if the superior Lease requires such consent to be obtained. NB: Where the consent of the superior lessor is not lodged Land Registry will make the following entry in the Property register of the new title:
'The Registrar has not seen any consent to the grant of this sub-Lease that the superior Lease out of which it was granted, may have required.'
- any consent required by a restriction or caution affecting the lessor's title
- any new charges, charging the new Lease as additional security, together with certified copies
- an application form RX1 for any restriction being applied for, other than a form A restriction. However, from 9 January 2006 a Lease containing clauses LR1 to LR14 of schedule 1A LRR 2003 may be used at clause LR13 to apply for entry of a standard form restriction. This will include prescribed clauses Leases granted on or after 19 June 2006. Form RX1 must continue to be used to apply for entry of a restriction contained in any other Lease or for entry of a non-standard form restriction.
- where the lessor's title is unregistered, an examined abstract or epitome of title of the lessor's title and any superior titles if absolute leasehold title is required
- deed of variation, if the term of the old Lease has more than 21 years to run. NB: A deed varying a Lease that takes effect as a surrender and regrant of the leasehold estate does not have to be a prescribed clauses Lease. This exception applies whether or not the original Lease was a prescribed clauses Lease.
- the existing Lease, if the new Lease is drawn by reference to the terms of the existing Lease.
If the Lease is out of a registered title and is granted on or after 19 June 2006, with certain exceptions, the Lease must be a prescribed clauses Lease (rule 58A LRR 2003).
(All italics in this page are Crown Copyright and reproduced here for your information with permission from HM Land Registry)
Please telephone Paul on 0161 866 8999 if you require any further information.
Ford Banks Irwin Solicitors
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