How to avoid a lease plan being rejected on assignment - the do’s and don’ts

The Land Registry’s strict and extensive rules on demise plans have long been known. However, whereas previously these rules only applied to new leases being granted for a term of 21 years or more, the Land Registration Act 2002 has changed this position. This has led to lease registration headaches for prospective tenants.

The introduction of the Land Registration Act 2002 on 13 October 2003 reduced the length of a registrable lease from 21 to 7 years. Since that date, the grant of a new lease for more than 7 years or the assignment of an existing lease with more than 7 years to run must be registered. It is the assignment of existing leases which has turned out to be problematic as it was never envisaged at the date of grant that these leases would ever have to be submitted for registration. It transpires in practice that many demise plans in these leases do not comply with the Land Registry’s rules. This has resulted in many applications to register assignments being rejected