Please mind the “registration gap”!

Niki Constantinou looks at the risks presented by the gap that appears between the completion of a transfer and the date when the transfer is registered by the Land Registry.

The issue of delays in registering legal title at the Land Registry continues to be a common issue across the commercial property sector.

However, in early February 2025 the Ministry of Housing, Communities and Local Government (MHCLG) announced that it was “opening up key property information, ensuring this data can be shared between trusted professionals more easily, and driving forward plans for digital identity services to slash transaction times.”

What is the “registration gap”?

It is the period between the completion of a registrable disposal (i.e. the transfer of a freehold interest or a lease of more than seven years) and the date this is registered at the Land Registry.

During this “gap”, the freehold interest or leasehold interest is held “in equity”. This means that the legal interest stays with the seller or the landlord who holds the property on trust for the purchaser or the tenant until the registration is completed. The purchaser or tenant only receives the beneficial title to the property during this period.

What are the risks associated with the “registration gap”?

If a party is relying solely on the information held at the Land Registry, there is a possibility that the information they are relying on would not be up to date and therefore correct.

Furthermore, the registration gap can cause issues for parties looking to serve notices under leases, forfeit leases or enforce leasehold covenants.

Under the Landlord and Tenant Act 1954, notices must be served by or upon a legal owner (i.e. the registered proprietor).

These delays also cause issues for new landlords who wish to lease premises when the title is not yet registered in their name.

These delays may also result in financial losses for parties that depend on timely transactions for investment and development.

What is on the horizon?

The MHCLG has launched a 12-week project (from February 2025) to identify the design and implementation of agreed rules on data for the conveyancing sector, so that it can easily be shared between conveyancers, lenders and other parties involved in a transaction.

In its February 2025 press release, the Land Registry stated that “the move to digital is a crucial part of our efforts to provide a faster registration service.”

It is also leading a 10-month pilot programmes with a number of local authorities to identify the approaches to opening up more of their data and making it digital.

In a letter dated 3 March 2025 to the Minister of State for Housing, Communities and Local Government, the Land Registry thanked him for supporting its work “to create a fully digital, geospatial land register that is fit for an AI- and data-driven economy.”

For the time being, we can find reassurance in the efforts of both the Government and the Land Registry in this area.

In the meantime…

Solicitors should always ensure that applications to register property transfers are submitted to the Land Registry promptly following completion and that these applications include all required supporting documentation.

This will reduce the risk of requisitions being raised and further delays caused.

Where the delay in the registration will cause legal financial, or personal problems not related to a land transaction, or put a property transaction at risk (i.e. a refinancing deal or development), you can apply to the Land Registry to expedite the application.

The Land Registry  aims to process expedited applications within 10 working days of such an application being made.

Including contractual provisions in a sale agreement requiring the seller to manage the property and serve any notices required by the buyer during the registration gap can help mitigate this issue.

If you require further information about this article, please contact Niki Constantinou at NConstantinou@sharpepritchard.co.uk

Niki Constantinou is an Associate at Sharpe Pritchard LLP.

This article is for general awareness only and does not constitute legal or professional advice. The law may have changed since this page was first published. If you would like further advice and assistance in relation to any issue raised in this article, please contact us by telephone or email enquiries@sharpepritchard.co.uk.