One Stumbling Block To Registration Of Land In Oakham
Over the past 15 months, we have undertaken numerous transfers of land in Oakham, some more complicated than others, but all ending satisfactorily.
However, we have seen an issue arising in some areas of Oakham in respect of unregistered land. Unregistered land is, as you will likely know, land acquired by the current owner long before compulsory registration was required when properties were bought and Oakham, like many places, has its fair share of these types of property.
When undertaking the routine checks required in relation to unregistered land, it has become apparent that there is a restriction registered with H M Land Registry which affects some properties in the area. We have detailed the restriction more particularly below.
At some point in the past, a restriction known as a ‘Caution against First Registration’ was placed on certain areas of unregistered land in Oakham, meaning that in order to register the title, you must first have the restriction lifted. This is not, in and of itself, difficult as the party with the benefit of the restriction is quite happy to do so. However, they do require that a fee be paid to their solicitor for the production of the relevant document to remove the restriction.
This form, known as a Form WCT, can then either be registered by the vendor’s solicitor prior to exchange or alternatively, passed to the buyer’s solicitor for them to submit to the Land Registry with their application to change the register.
Unfortunately, there is no other way around this issue and sellers should be aware of the potential costs involved if the property is unregistered. It is possible for sellers to contact H M Land Registry to ascertain whether their unregistered property is affected by such a restriction prior to looking to sell and this may be something to consider if you know you have not yet registered the property.
In addition to properties being sold on the open market, this restriction does also catch Transfer of Equities and Voluntary First Registrations, so if you are considering any of these transactions, please be aware that there may be a further additional cost involved, over and above the solicitor’s fees.
Talk to Tollers for all your buying and selling property requirements.