A lot of administration and paperwork is needed to sell a leasehold flat.
Registration is a big part of this.
Read on to find out what it is and whether you can sell without it.
What does it mean to register a flat?
In the UK, registering a flat refers to notifying HM Land Registry with details of its sale.
This records the sale and transfers the leasehold to the new owner. The key documents needed for it include:
- The lease
- Mortgage deed
- Restriction deeds (such as easements, covenants – if applicable)
- Transfer deed
- Registration forms
- TR1 form.
Registering property was not compulsory in many cases until 1990. And the Land Registration Act 2002 further broadened its scope.
Can you sell a flat without registering it?
You can sell a flat without registering it in some circumstances:
- If the leasehold has less than 7 years left at the time of purchase
- If the flat was last bought before 1990 in an area outside of the the compulsory registration and has remained in the same ownership since and without “triggering events”(like a sale or mortgage)
In the latter case, the buyer may still have to register it. Or they might ask you to register it before they agree to a sale.
Why is it harder to sell a flat without registration?
No proof of ownership
Uncertainty over the seller’s rights to sell the property if they are not the registered owner.
No mortgage checks
Buyers cannot confirm existing mortgages or charges over the property through the land registry.
(This doesn’t apply to cash buyers, who don’t need mortgages. However, they might still want it to aid their re-sale.)
Uninsured title
Lack of legal protection for buyers means title insurance is required at an added cost.
Registration delays
The eventual registration process can take months after completing the sale.
Reluctant buyers
Most buyers and mortgage lenders are wary of taking on an unregistered property.
Breach of lease
Check if terms force registration, which could prevent the sale. It may breach the lease terms if the title is required to be registered.
Ongoing liability
Seller remains responsible for ground rent and obligations until registered.
Legal challenges
Greater scope for disputes and claims against unregistered property rights.
An unregistered flat sale is possible but high-risk and unpredictable.
Extra time, cost, and legal work are involved during and after the sale.
This uncertainty puts off most buyers, so it will take longer to secure a sale.
How to register your flat
Check if your flat lease has already been registered
This is a simple check, but very important. It’s useless going through the purpose if it’s already done.
Search the title number on the land registry website
This gives you the title number that you’ll need for your application.
Gather documents
This includes:
- Your lease document
- Any deeds
- Mortgage paperwork
- Proof of ID.
If you struggle to get some paperwork, a solicitor may be able to help you.
Complete a leasehold registration application form
This application form is the last step. You must fill it out accurately.
Submit this form to the land registry with fees
The land registry will examine the application. This can take around two months – however, you can pay for a faster service.
When registered, you will receive the title deed and lease plan and can find details online.
The flat can then be sold with a registered title to transfer to the new owner.
If you haven’t already registered, your solicitor can handle the registration process.
The cost of registering a flat
Standard fees are around £20 to £200.
However, this figure can vary depending on how much the property is worth.
Registration provides proof of ownership. It allows the details to be checked on the land registry website.
