Manchester Conveyancing Solicitors | Ford Banks Irwin Solicitors - The Property Lawyers in Manchester for Transfer / Lease of Business Premises
Please note: Not to be used or relied upon without legal advice. These notes are for illustration purposes ONLY
continued from page 19 . . .
Land Registry response and registration
Charges / Mortgages
The Land Registry will service notice of the application on any Mortgagee who can be identified. Conveyancing Solicitors and Property Lawyers should specify whether they are seeking registration free from the Mortgage or subject to the Mortgage. If they are seeking registration free from the Mortgage, the evidence they supply in support of the application needs to set out the grounds on which it is claimed that the squatter's title is free from the Mortgage. If they seek registration subject to the Mortgage, any notice Land Registry serve on the Mortgagee will make clear that they intent to enter the Mortgage on the new title, or register the squatter as proprietor subject to the Mortgage, unless the Mortgagee expressly agrees to release their rights in the Property.
Objecting to the squatter's application
Anyone wishing to object to an application should deliver to the Registrar a written statement signed by them or their Conveyancing Solicitors and Property Lawyers. It should state that the objector objects to the application, state the grounds for the objection and give the objector's full name and an address for service. This should be a postal address, whether or not in the United Kingdom. Further postal, email or DX addresses may be given as well, but there can be no more than three addresses for service in total.
In an objection is received, then the application cannot be determined until the objection is disposed of, unless the Registrar is satisfied that the objection is groundless.
If the Registrar decides that the objection is not groundless, notice of the objection should be given to the squatter or their Conveyancing Solicitors and Property Lawyers. The Registrar will then ask both parties whether they wish to negotiate and whether they consider that it may be possible to reach an agreement. If all parties respond positively, the Registrar will allow them time to settle the matter by agreement. However, as soon as it becomes clear that the two sides are unable to reach an agreement, the Registrar should refer the matter to the Adjudicator. The Registrar will do this immediately if the parties do not wish to negotiate.
The adjudicator will then either set a date for hearing and determining the matter or direct one of the parties to start proceedings in Court. Further details of the procedure to be followed and of the position as to costs will be supplied by the adjudicator's office at that stage.
A squatter needs to take account of these points before making an application based on adverse possession. Even if the application does not lead to Court proceedings or a hearing:
- Land Registry will serve notice on the owner of the Property (if known) and
- in limited circumstances the squatter may have to pay the costs incurred by the owner as a result of the squatter's application.
Leasehold matters
Adverse possession of leasehold Property
As soon as the squatter takes possession of Property that is leased, time runs against the tenant.
However, where the Lease is unregistered Land Registry will refuse an application for first registration. This is because the tenant, although no longer able to recover possession of the Property from the squatter at the end of the limitation period, can still surrender the Lease to the Landlord.
Time does not run against the Landlord until the Lease expires - unless the adverse possession started before the Lease, in which case time will continue to run against the Landlord during the term of the Lease.
Non-payment of rent before the Lease expires is irrelevant. However, if a stranger wrongfully continues to receive the rent of leasehold Property for 12 years, provided that the Lease is in writing and not granted by the Crown and the rent is at least £10 a year, the Landlord becomes statute barred and, where the estate is registered and the transitional provisions apply, the stranger becomes entitled to be registered.
Encroachment from Leasehold Property
Encroachment from Leasehold Property by a Tenant squatting on an unregistered freehold estate and seeking first registration of a leasehold title:
If the squatter is the Lessee of adjoining Property, the encroachment will usually be presumed to amount to an accretion of their Lease. The additional property will be included in the surrender to the Landlord when the tenancy ends.
. . . continued on page 21 (Manchester Conveyancing Solicitors Property Lawyers for Transfer or Lease of Business Premises 21)
Please telephone Paul on 0161 866 8999 if you require any further information.
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