When must a lease be registered?

Leases for more than seven years must be registered with the Land Registry, and it’s usually the tenant’s responsibility to complete that registration. If they fail to do so within two months of completion, it is not a valid legal lease and only takes effect as an agreement for a lease (a contract).

Can you register a lease late?

Your lease will not be ‘good against the world’ and is only enforceable as a contract between you and the Landlord. Application can still be made to the Land Registry after two months, however they are unlikely to look kindly on late applications and can refuse to register the lease.

How long does it take to register a lease with Land Registry?

The Land Registry advise that processing times for updating the register (adding a mortgage or changing ownership) take about 4 to 6 weeks, and creating a new register (transfer of part or new lease) take about 6 to 9 months.

What happens if a lease is not registered?

If the lease is not registered, it follows that this notice is not given and means that the grant of the lease cannot operate at law. The consequence of this is that a landlord may not be able to recover unpaid rent from the guarantor if the tenant fails to pay.

When do you need to register a lease?

Any transfer of a registered lease must be registered again. It’s also possible to voluntarily register a lease on any older leases with more than seven years to run. If a lease is for between three and seven years, then it can be noted against the landlord’s title in the Land Registry.

Can a business lease apply to a non residential property?

The latter only applies to agricultural businesses (farming). Most non-residential leases are regulated by the former, even where the tenant is a private individual and does not operate a business from the property. The effect of these laws is to reduce the power that a landlord has over the tenant by increasing the tenant’s rights.

Who is responsible for registering a commercial lease?

Who is responsible for registering the lease? It’s the tenant’s responsibility to register the lease, so landlords will usually chase up tenants if they hear nothing about the registration by the end of the first month after lease creation.

What happens when you sign a commercial lease?

Commercial leases are generally subject to much more negotiation between the business owners and the landlord, since businesses often need special features in their spaces, and landlords are often eager for tenants and willing to extend special offers.

Why does my lease need to be registered?

The tenant only has an equitable interest in the property. This can create all sorts of enforceability issues for landlords and tenants alike. This is why, as a tenant, you might find a covenant in your lease requesting you to apply to register it within a specific time period.

Can a landlord sell a business while the lease is still active?

Perhaps your landlord sold the commercial property that your business is in while the lease agreement is still active. Maybe one of their relatives actually owns the property on paper and they are just acting as the landlord. As the seller, you’ll want to make sure the person you know as the landlord is actually the owner of the property.