View related news articles
The Land Registry has published a new practice guide on restrictions on registered leasehold properties: Land Registry Practice Guide 19A
The new practice guide provides guidance on the following areas:
The new practice guide complements existing Practice Guide 19: notices, restrictions and the protection of third party interests in the register
The new guidance can be briefly summarised as follows:
– Where the landlord has changed – In this circumstance, the Land Registry will accept an application to cancel the restriction on the leasehold title from the new landlord or tenant where the restriction relates to covenants in the lease. The application must be accompanied by a conveyancer’s certificate that the restriction relates to the covenants in the lease and is therefore no longer required or alternatively evidence that the restriction relates to covenants in the lease or that the restriction is otherwise no longer required. A new restriction could then be applied for.
– Where the landlord is a dissolved company – in this circumstance, the tenant may apply for cancellation or dis-application of the restriction. Evidence of dissolution of the landlord must be submitted, along with a conveyancer’s certificate that the restriction relates to covenants contained in the lease. Cancellation of the restriction may be considered preferable to dis-application, unless it is likely that the company will be restored in order to perform its obligations under the lease.
– Where the management company has changed or been dissolved – sometimes a restriction will be in a management company’s name. Any covenants in the lease by or in favour of the management company will not pass to a new management company, so the restriction will be superfluous when the management company changes or is dissolved. In that circumstance, the tenant or landlord can apply for cancellation of the restriction.
For further information please contact a member of our Commercial Property department.
Myerson are the premier commercial property solicitors in Cheshire and South Manchester. Our expert solicitors can advise on all aspects of commercial property law.