Understanding Unregistered Properties
Whether you’re a proud homeowner or a seasoned pro in the property world, it’s key to know about unregistered properties and their impact. In this guide, we’ll cover the essentials like what unregistered properties are, the registration process and associated costs.
What’s an unregistered property?
An unregistered property is one that’s not on the Land Registry’s radar, meaning there’s no official record of its ownership or any interests in it. This lack of documentation can make selling or securing loans against such properties a real headache.
Since 1990, it’s been a must to register any property when it’s sold or mortgaged. However, about 15% of properties in England and Wales remain unregistered, largely because they’ve been held by the same owner since before 1990 without a mortgage or change of ownership.
How do you register your property with the Land Registry?
Getting a property registered with the Land Registry might sound daunting, but it’s pretty straightforward. Here’s how to do it:
- Start with the form: Your first move is to fill out the Land Registry’s First Registration application form. You can find this on the Land Registry website.
- Send your paperwork: Once you’ve got your form filled out, bundle it up with the necessary documents and send it off to the Land Registry office.
- Sort out the fee: Next up, you need to pay the registration fee. You can do this online or the old-fashioned way with a cheque. After your payment is sorted, the Land Registry will send over a certificate of title. This is your golden ticket, showing you’re the official owner. Keep in mind that this process can take a while —weeks or even months.
Special tips for owners and buyers:
- For current owners: If you’ve got an unregistered property, think about registering it voluntarily. It’s a smart move that can make selling your property down the line much smoother, not to mention you’ll get a discount on the registration fee.
- For future owners: Buying an unregistered property? It’ll need to be registered as part of the purchase process and may mean it takes a little longer for everything to go through.
What if I’ve misplaced the original title deeds?
If you find yourself in a situation where your original title deeds are missing, there’s no need to panic.
If your property is already registered, you can obtain a copy of the deeds from the Land Registry. It’ll cost you £3 a document, but it’s a straightforward process and proves your ownership.
In cases where your property isn’t registered, your next step is to contact your mortgage lender. They usually have a copy of the title deeds on file, which you can use to get your property registered with the HM Land Registry (HMLR).
Even if the original house deeds and documents have vanished or been destroyed, registering your property with the Land Registry is still achievable. This is done by applying for first registration, supported by a Statement of Truth that provides enough evidence to prove your ownership.
A key part of this process involves establishing a clear and uninterrupted chain of ownership for at least the last 15 years. Successfully presenting this evidence could grant you an absolute title. However, if there are gaps in this history, you might only qualify for a possessory title when registering your property.
To avoid any pitfalls, getting the help of a conveyancer is wise advice. Their expertise can help ensure the process is completed accurately and without unnecessary delay.
How long does registration take?
Registering an unregistered property with the Land Registry might take a couple of months, give or take. The timeline can vary based on several things, like if there are any snags with the property’s details or if it’s owned by more than one person. If all sails smoothly, you could be holding your Land Certificate of Title within a few months.
Though it’s possible to snap up an unregistered property, getting it registered sooner rather than later is a smart move. Opting for voluntary registration not only gets you a title deed certificate as solid proof of ownership but also helps protect you from someone fraudulently claiming that your property is theirs.
Besides, having your property registered clears the way for an easier sale or mortgage down the line. So, investing the time to register your unregistered property is definitely a smart play.
What’s the cost of registering a property?
Registering an unregistered property comes with its costs, split into two main categories based on your property’s value. For properties valued at £120,000 or less, you’re looking at scale one fees, which are £40. If your property’s value tips over £120,000, then scale two fees apply, and you’ll be paying £95.
But it’s not just about the Land Registry fees. There’s often a bit more to fork out for, including legal and surveyor’s fees. So, it’s pretty crucial to chat with a professional before diving into the registration process. Getting the right advice can help you navigate through smoothly and avoid any unexpected costs.
Can unregistered properties be sold?
Without a doubt, they can; they just require a little extra work and cost in the sales process.
First up, proving you own the property is key. This means having the original deeds or some solid legal proof in hand, as described above. Also, be prepared for the sale to possibly take a bit longer, as the buyer’s conveyancer will want to do their homework on the property.
Often, these unregistered homes have been in the same hands for generations, predating the need for registration. So, when they hit the market, it’s usually because the owner has passed away, adding a few more steps to the process, like dealing with probate.
Another snag might be that the title plans from the old deeds aren’t as clear or detailed as the ones from HM Land Registry, missing out on things like precise scales and boundaries of neighbouring properties.
Title deeds & Kotini
Thankfully, estate agents using Kotini have an easy ride when it comes to title deeds and unregistered property. When they set up a transaction to sell a property in Kotini, the system automatically goes to HM Land Registry, orders the title deeds for the property and saves it against the sale transaction, helping them to prove the ownership of the property.
If a property happens to be unregistered, we’ll tell them that, too, so they know when to source some extra information from their sellers to help prove ownership and keep the transaction running smoothly.
