Two laws form the backbone of property law and ownership in England. They are the Law of Property Act 1925, and the Land Registration Act of 2002. We provide an overview of these two pieces of legislation, and then proceed to discuss the broader aspects of English property ownership and disposal.
An Overview of English Property Law
The Law of Property Act 1925, describes the rules governing land and the improvements thereto, in particular lease and disposal. Parliament approved it in order to consolidate a number of pieces of legislation.
The Land Registration Act of 2002, has a narrower focus. It only defines the registration of land ownership. Some of this information was in the earlier Act, and so too this consolidated what was already there.
However, these Acts do not fully embrace the governance of property law and ownership in England. There is other legislation beyond the scope of this brief article, empowering contracts and deeds, and also the common law enshrined in Court decisions.
Limits of Rights of Ownership In England
Not everybody can afford to own a thatched cottage down a country lane in England. They would need to be wealthy, or to be fortunate heirs if a generous benefactor favours them. The rest of us may merely dream of something like this:
We would need to be over eighteen to register that thatched beauty in our name. Although any individual over that age, regardless of nationality, may purchase and sell freehold land in England without restriction. Companies may own property too, although foreign entities must first register with Companies House.
The UK Land Registry is to a large extent the custodian of property law and ownership in England, although not all properties are on its register. However, all new property transactions and property interests in England must now be available for public inspection on the UK land registry site.
Types of Property Titles in England
There are several types of property rights in England, and these vary quite considerably:
- Freehold title means the property owner possesses both the land and the improvements on it.
- Leasehold land endows the owner with a right to use the land, and the improvements for a specified period.
- Commonhold land applies to buildings with multiple occupants who own individual units, but are jointly responsible for common areas.
These three forms of ownership are never informal arrangements. That’s because they have no legal force unless they are enshrined in a legal deed. There are, however, two variations to this theme, when we delve deeper into property law and ownership in England:
- Some rights, such as options, agreements to sell, and agreements to lease are written into separate agreements.
- And then there is also the case of prescriptive rights, that have existed for a long time without any challenge.
- Beneficial interests in favour of one owner of joint land relate to that owner only, unless the right is in the title.
Property Owned But Not Registered
There is still property in England without registered owners. This is mostly because their current status has not changed since the legal obligation to register ownership came into force.
Several triggers are gradually working away at the 12% backlog in land registration. These triggers include transfers, grants of lease for more than seven years, and grants of mortgages. The authorities have a plan to eliminate the backlog by 2030.
To What Extent Is Property Title Binding?
The government underwrites English property titles through the Land Registry, which indemnifies those affected by any errors in its register. This includes the possibility of the Registry accepting forged documents at face value. Although it in turn, may recover these costs from any responsible third party.
When Does Land Ownership Transfer?
Transferring property ownership in England is typically a two-stage process. The first phase involves agreeing to purchase and transfer the property. The process ends with payment and the transfer of legal ownership, subject to registration with the UK Land Registry.
These largely harmonious deals often begin with objectively determining the market value of a property. Avery Associates regularly arranges RICS “red book” valuations. These meet the exacting standards of the Royal Institution of Chartered Surveyors.
More Information
HM Land Registry Services Available: A Summary
Home Ownership Types And Occupation Rights
Jeffrey valued the contents and arranged a RICS Surveyor to carry out a ‘Red Book’ valuation. Job done! During the entire process, I was kept informed. Thank you so much. I live 100 miles away from the property and I needn’t have worried. Everything went according to Jeffrey’s plan! I warmly recommend them. Jenny Schon
